Eleventh-Hour Traders Swarm Chipotle Mexican Grill (CMG)

Chipotle Mexican Grill, Inc. (CMG) is seeing tons of activity in the weekly 4/10 option series

Digital Content Group
Apr 10, 2015 at 1:50 PM
facebook twitter linkedin


Chipotle Mexican Grill, Inc. (NYSE:CMG) is up 4.7% this afternoon at $682.82, but remains slightly lower year-to-date. Meanwhile, last-minute options traders are extremely active -- especially on the call side, where intraday volume quadruples what's expected.

Specifically, the weekly 4/10 series of options is stealing the show, with each of the top five strikes expiring at today's close. In the lead is the weekly 4/10 690-strike call, which speculators are buying to open in the hopes CMG will topple $690 by tonight's close, when the series ceases trading. Others are selling to open the weekly 4/10 675-strike put, expecting the restaurant stock to maintain its foothold atop this level over the next two hours.

Taking a step back, Chipotle Mexican Grill, Inc. (NYSE:CMG) calls have been strongly preferred over puts, among options with a shelf-life of three months or less. The equity's Schaeffer's put/call open interest ratio (SOIR) of 0.86 ranks below 99% of comparable readings from the past year, suggesting the current call-focus among short-term traders is more pronounced than usual.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners