OPN Extra on Chipotle Mexican Grill CMG

Here is what I mentioned in the OPNExtra section on CMG, before markets opened-

CMG will provide some good day trading opportunities. As of this writing the stock is down $77 or almost 20%. I was earlier thinking that $352 will be a good support, but that has already been taken out in the pre-markets. Next support was $332 which has also been taken out. Next support at I see is around $308-$316.

So here is the game plan (very aggressive trades and requires day trading account)- when CMG opens, get the next out of the money strangle for as low price as possible. Though it is difficult to say where it will open, but i hope you get the concept. It will be very unlikely that it will be pinned at 330, either it may move towards 340+ or 325 – so that strangle may pay out nicely with a $10+/- move in either direction after opening.

Use the options that expires today (and assume 100% risk upfront). I target for a strangle roughly within $1.00 to $2.00 or so. Needless to say, for as little as possible

So far the low of of the day is $307.20! CMG moved more than $10 +/- and a $2 further out of the money strangle more than tripled.

Based on my earning trading experience (both underlying and strategies) of past 20 quarters, I have screened a list of 60 underlyings that I will be using for trading this JAS (July, August, September) quarter.  Please note, these ideas are FREE for OPNewseletter and it’s performance is NOT used in OPN’s performance calcualtions.

Just to reinforce, above trade ideas are treated as accelerator as only a small fraction of capital is invested in those trades. If would like to try OPNewseletter, pls click here to join.

Now to next.

Profitable Trading, OP






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