Quantchabot has detected a new Bear Call Spread trade opportunity for CHIPOTLE MEXICAN GRILL (CMG) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
CMG was recently trading at $47.89 and has an implied volatility of 39.65% for this period. Based on an analysis of the options available for CMG expiring on 25-Apr-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $42.29-$48.12 at expiration. In this scenario, the average linear return for the trade would be 70.81%.
52 week low: CHIPOTLE MEXICAN GRILL recently reached a new 52-week low at $47.89. CMG had traded in the range $47.98-$69.26 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if CMG maintains its current direction and does not revert back to pricing on the bullish side of $47.89 on 25-Apr-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if CHIPOTLE MEXICAN GRILL closes at or below $48.34 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 51.44% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
Leave a Reply
You must be logged in to post a comment.