Chipotle Mexican Grill will report earnings after the close on July 24
Chipotle Mexican Grill Inc (NYSE:CMG) stock tumbled on the charts as the hype surrounding its 50-for-1 stock split faded. The equity's rally after the stock split, which was announced in March, culminated in a June 18 record high of $69.26. After the split went into effect June 26, however, it has been downhill. In the last month, CMG is down 16.6%, though still up 17.2% this year.
Investors are now are looking ahead to the company's second-quarter earnings report, which is due out after the close on June 24. The security has a history of outsized post-earnings moves, averaging a next-day swing of 8.4% in the last two years, regardless of direction -- though notably, its last three reports yielded positive sessions. This time, the options pits are pricing in a 12% post-earnings move.
Bulls have been out in full force i the last 10 weeks. Chipotle stock's 50-day call/put volume ratio of 2.82 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 97% of readings from the past year. This means calls have been getting picked up at a much faster-than-usual rate.
It's also worth mentioning that CMG has dropped firmly into "oversold" territory, per its 14-day relative strength index (RSI) of 22.8. Should the security experience a positive next-day swing, this could give it a little more of a boost.