<SUBMISSION>
<ACCESSION-NUMBER>0001181431-06-000143
<TYPE>3
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20051229
<FILING-DATE>20060103
<DATE-OF-FILING-DATE-CHANGE>20060103
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>JONES PAUL TUDOR II
<CIK>0001270196
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>000-50995
<FILM-NUMBER>06502079
</FILING-VALUES>
<MAIL-ADDRESS>
<STREET1>C/O TUDOR INVESTMENT CORP
<STREET2>1275 KING ST
<CITY>GREENWICH
<STATE>CT
<ZIP>06831
</MAIL-ADDRESS>
</REPORTING-OWNER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>TUDOR INVESTMENT CORP ET AL
<CIK>0000923093
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>000-50995
<FILM-NUMBER>06502080
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1275 KING STREET
<STREET2>2ND FLOOR
<CITY>GREENWICH
<STATE>CT
<ZIP>06831-2936
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1275 KING STREET
<STREET2>2ND FLOOR
<CITY>GREENWICH
<STATE>CT
<ZIP>06831-2936
</MAIL-ADDRESS>
</REPORTING-OWNER>
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>CAPE COASTAL TRADING CORP
<CIK>0001219097
<ASSIGNED-SIC>5000
<IRS-NUMBER>522372260
<STATE-OF-INCORPORATION>NY
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>350 5TH AVENUE
<STREET2>SUITE 3304
<CITY>NEW YORK
<STATE>NY
<ZIP>10018
<PHONE>212-971-9715
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>350 5TH AVENUE
<STREET2>SUITE 3304
<CITY>NEW YORK
<STATE>NY
<ZIP>10018
</MAIL-ADDRESS>
</ISSUER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>rrd101497.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2005-12-29</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001219097</issuerCik>
        <issuerName>CAPE COASTAL TRADING CORP</issuerName>
        <issuerTradingSymbol>CCSR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000923093</rptOwnerCik>
            <rptOwnerName>TUDOR INVESTMENT CORP ET AL</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>ATTN:  STEPHEN N. WALDMAN</rptOwnerStreet1>
            <rptOwnerStreet2>1275 KING STREET</rptOwnerStreet2>
            <rptOwnerCity>GREENWICH</rptOwnerCity>
            <rptOwnerState>CT</rptOwnerState>
            <rptOwnerZipCode>06831-2936</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001270196</rptOwnerCik>
            <rptOwnerName>JONES PAUL TUDOR II</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O TUDOR INVESTMENT CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2>1275 KING STREET</rptOwnerStreet2>
            <rptOwnerCity>GREENWICH</rptOwnerCity>
            <rptOwnerState>CT</rptOwnerState>
            <rptOwnerZipCode>06831-2936</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>1</isOther>
            <otherText>Chairman of Tudor</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, $0.001 par value</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1666667</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnote</value>
                    <footnoteId id="F3"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Warrants</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5.85</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2005-12-29</value>
            </exerciseDate>
            <expirationDate>
                <value>2010-12-29</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Warrants</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>422667</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                    <footnoteId id="F4"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Tudor Investment Corporation (&quot;TIC&quot;) is the investment adviser or trading advisor to each of The Tudor BVI Global Portfolio Ltd. (&quot;BVI&quot;) and Witches Rock Portfolio Ltd (&quot;Witches Rock&quot;) and is an affiliate of Tudor Proprietary Trading, L.L.C. (&quot;TPT&quot;).  TIC disclaims beneficial ownership of the securities reported herein as indirectly owned except to the extent of its pecuniary interest in such securities.</footnote>
        <footnote id="F2">The Common Stock (the &quot;Shares) and warrants to purchase Common Stock (the &quot;Warrants&quot;) are reported herein as indirectly beneficially owned by Paul Tudor Jones II.  The Shares and Warrants are owned indirectly by TIC (see Footnote 1) and directly by BVI, Witches Rock, and TPT (see Footnotes 3 and 4).  Because Mr. Jones is the controlling shareholder of TIC and the indirect controlling equity holder of TPT, Mr. Jones may be deemed to beneficially own the Shares deemed beneficially owned by each of such entities.  Mr. Jones expressly disclaims such beneficial ownership.</footnote>
        <footnote id="F3">The shares of Common Stock reported herein as indirectly beneficially owned are directly beneficially owned by BVI, Witches Rock and TPT.  BVI, Witches Rock, and TPT own 215,738, 1,334,762, and 116,167 shares of Common Stock, respectively.</footnote>
        <footnote id="F4">The warrants to purchase Common Stock reported herein as indirectly beneficially owned are directly beneficially owned by BVI, Witches Rock, and TPT.  BVI, Witches Rock, and TPT own 59,935, 333,690, and 29,042 warrants to purchase Common Stock, respectively.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Tudor Investment Corporation, By:  Stephen N. Waldman, Managing Director</signatureName>
        <signatureDate>2006-01-03</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Paul Tudor Jones II</signatureName>
        <signatureDate>2006-01-03</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
