Can CMG recover from the post earnings drop?

NYSE:CMG   Chipotle Mexican Grill, Inc.
CMG had earnings today which were a beat but apparently less than expectations

of investors and traders. On the 15-minute chart, the indicators support a reversal

with a bounce on the dual time frame RS lines showing a bit of bullish divergence.

Decelerating bearish momentum on the MACD with lines converging under the histogram

suggests a reversal is impending. Further, the mass index indicator is in the reversal

zone but not yet triggering the signal with a drop below the zone. I will take a

long trade of CMG. They say trade what you know, My local CMG is always buzy and

a love either food. I believe that CMG is ready to give me a big rebate on my

patronage. I will take a call option expiring 8/18 striking $2100. I expect to realize

a large profit having done a similar trade on CMG more than once in the past. The expected

premium of $7300 will be about $700 of risk given a stop =loss but I expect a reward

of 4-6 times that if not more.


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