Stock / Symbol: [private_monthly]Chipotle Mexican Grill / CMG[/private_monthly]
Price at trade post: $253.35
Option Strategy: call back spread
Max Risk: $1,950 (at Mar expiration)
Max Reward: unlimited
Profit Range: $0 - $250 & $290 + (at Mar expiration)
Reasoning: With earnings coming tomorrow after hours, we're structuring at call back spread which will enable us to profit whether the stock moves up, down, or sideways. If [private_monthly]CMG[/private_monthly] really pops with earnings, we're set up to capture unlimited upside. If the stock stays flat or crashes, we'll be able to close out at around break even or better.
Trade Details:[private_monthly]
Sell -1 CMG Mar11 250 Call
Buy 2 CMG Mar11 270 Calls
for a net credit of $0.50 per contract
Requirements:
Cost/Proceeds ($50.00)
Option Requirement $2,000.00
Total Requirements $1,950.00
Estimated Commission $12.95
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Chart:[private_monthly]
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