Looking At Chipotle Mexican Grill's Recent Unusual Options Activity
Portfolio Pulse from Benzinga Insights
Options trading activity for Chipotle Mexican Grill (NYSE:CMG) indicates a bearish sentiment among traders, with 68% of the unusual trades being bearish. The trades include 10 puts and 56 calls, with a focus on a price range between $900 and $3100. The largest trades observed were mostly calls with bearish sentiment, except for one bullish put trade. Chipotle is a leading fast-casual restaurant chain with $8.6 billion in sales in 2022. CMG's stock price is slightly up, with RSI indicators suggesting it may be approaching overbought territory. Analysts from Raymond James and RBC Capital maintain an Outperform rating with target prices of $2450 and $2425, respectively.
December 15, 2023 | 6:16 pm
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NEGATIVE IMPACT
Bearish options activity and potential overbought RSI indicators may put downward pressure on CMG's stock price in the short term, despite positive analyst ratings.
The bearish options activity, especially the high volume of bearish calls, suggests that traders anticipate a potential decline in CMG's stock price. However, the positive outlook from analysts and the current slight uptick in stock price provide a counterbalance, which may limit the extent of the bearish impact. The RSI approaching overbought territory could also signal a short-term pullback.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100