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