A Look At Chipotle [CMG] As of Close 2 August 2016

I’ve been watching this “fallen angel” Chipotle for awhile.  I am of course, aware how far the stock has fallen… and why.  But I just can’t imagine that a company with Chipotle’s footprint will just roll up and die. 

So…

Have a look at the mother of all Magnet Setups.

I think it can be an extraordinary winner… or a pretty average loser.  In other words, an asymmetric outcome… our favorite.

The company details:

Metrics:

52 Week Hi: $758.61

52 Week Lo: $384.77

TAOST Ultimate Stop: $311.00

Average Daily Volume: 1.1mm

Optionable: Yes; Weekly, Monthly and LEAPs

Next Earnings Report Date: Wk of Oct. 18th 2016

Profile: Chipotle Mexican Grill, Inc., together with its subsidiaries, develops and operates fast-casual fresh Mexican food restaurants. As of December 31, 2015, the company operated 1,971 Chipotle restaurants in the United States; 11 in Canada; 7 in England; 4 in France; and 1 in Germany. It also operated 13 ShopHouse Southeast Asian Kitchen restaurants serving fast-casual and Asian-inspired cuisine, as well as owned and operated 3 Pizzeria Locale restaurants that are fast casual pizza concept restaurants. The company was founded in 1993 and is based in Denver, Colorado.

Trade Thesis: This is a massive retracement setup.  The Magnet Zone is inside an even bigger support zone.

CMG M 2 August 2016

And here’s a quote on the Jan 2018 Expiration Leaps

CMG Leap

KIS,

The Trader