Chipotle Mexican Grill Inc (CMG) $314.37 -22.16%
Chipotle leads the losers list this morning with a 20+% ($86) decline to $316 after earnings failed to impress investors (and a few analyst downgrades didn’t help), and early option flow is extremely heavy, with 40,000 contracts trading in the first 20mins- nearly 20x the avg flow for the name. 61% of the flow is in expiring July options- as traders deal with the unprecedented move (for CMG) and it’s consequences in the options. Yesterday’s most active strikes were July 425 and 410 calls, and the 405 straddle closed in the $19 price range ($92 this morning!) Away from July contracts, a sweep buyer paid 2.65 to open 753 Aug 350calls when shares were near $316.96, apparently expressing a view that the high-end burrito chain may be due for a bounce after the dust settles.
Category: All Stocks, Large Cap Stocks, Restaurants
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About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.
