Chipotle (CMG) – Bearish Options Action Trade for April 1st, 2019

Bearish – CMG $ 710.31 – Consumer Discretionary

The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.

On Friday’s Options Action, the crew analyzed the performance of Chipotle stock. Chipotle has been one of the strongest stock in the S&P 500 this year, posted strong growth since the December lows. With earnings coming up at the end of April, CMG is currently priced with exceptionally strong growth and operating margins. Expecting CMG to trade lower on earnings, Michael Khouw suggests buying an Apri/June 700 Put Calendar for a $28.30 Debit. As of Friday’s close, these puts were trading at a $29.80 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CMG Options Action VideoView CMG Trade


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