I’d like to raise an unopened bottle of cumin in celebration of the fall of Chipotle, which is a stock I used to treat like Kryptonite. After the recent trendline failure, I decided to give it a shot and bought September $60 puts. They’re up 50% already, and I’m anticipating much better returns.
I recognize that CMG hasn’t traditionally been prone to hearty tumbles, but this is a major trendline failure, unlike the lasted-for-a-few-minutes one that took place during the Covid Crash.
For a place that sells mediocre fast food, it has a terribly rich P/E ratio and has, for many years, been the beneficiary of financial engineering and a cult-like following.
