What the Options Market Tells Us About Chipotle Mexican Grill – Chipotle Mexican Grill (NYSE:CMG)

Investors Take Bearish Stance on Chipotle Mexican Grill: What You Need to Know

Investors with significant capital have recently taken a bearish stance on Chipotle Mexican Grill (CMG), and retail traders should take notice. This observation was made when uncommon options trades for CMG were detected using Benzinga’s options scanner. These trades, which we track here at Benzinga, often indicate that someone may have insider knowledge or expects a significant event to occur.

While it is unclear whether these trades were made by institutions or wealthy individuals, the overall sentiment of these big-money traders is divided, with 31% bullish and 68% bearish. Out of the 41 special options trades uncovered, 27 were puts, totaling $1,023,615, and 14 were calls, totaling $924,585.

Analyzing the volume and open interest in these contracts reveals that the big players have been eyeing a price range of $1,160.0 to $3,000.0 for Chipotle Mexican Grill over the past quarter. These metrics provide insight into the liquidity and investor interest in CMG’s options at specific strike prices.

To further illustrate the significance of these options trades, here are a few notable ones:

1. Symbol: CMG
Put/Call: CALL
Trade Type: TRADE
Sentiment: BULLISH
Expiration Date: 03/15/24
Strike Price: $2,300.00
Total Trade Price: $184.3K
Open Interest: 24
Volume: 21

2. Symbol: CMG
Put/Call: CALL
Trade Type: TRADE
Sentiment: BULLISH
Expiration Date: 02/16/24
Strike Price: $1,160.00
Total Trade Price: $108.1K
Open Interest: 0
Volume: 1

3. Symbol: CMG
Put/Call: CALL
Trade Type: TRADE
Sentiment: NEUTRAL
Expiration Date: 02/16/24
Strike Price: $1,200.00
Total Trade Price: $104.9K
Open Interest: 0
Volume: 1

Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $8.6 billion in 2022. The company primarily operates company-owned stores, with a presence in the Middle East through a development agreement with Alshaya Group. Chipotle’s menu includes burritos, burrito bowls, tacos, quesadillas, and beverages, with a focus on competitive prices, high-quality food sourcing, speed of service, and convenience. The company’s revenue is derived solely from restaurant sales and delivery fees.

After analyzing the options trading activity surrounding Chipotle Mexican Grill, it is worth examining the company’s current market standing and performance. Trading volume stands at 116,946, with CMG’s price slightly up at $2,220.0. However, RSI indicators suggest that the stock may be overbought. Additionally, an earnings announcement is expected in 71 days.

Trading options comes with higher risks but also offers the potential for higher profits. Traders can mitigate these risks through continued education, strategic trade adjustments, utilizing various indicators, and staying informed about market dynamics. Stay updated on the latest options trades for Chipotle Mexican Grill with Benzinga Pro for real-time alerts.

Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Trading options involves risks, and individuals should conduct thorough research and consult with a financial advisor before making any investment decisions.