Option Investor

Option Writer Portfolio - September

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Chipotle Mexican Grill, Inc. (CMG) engages in the development and operation of fast-casual, fresh Mexican food restaurants. I am being cautious on this stock because it is having some trouble getting out of the consolidation zone. My analysis of the sectors shows that consumer staples have the most relative strength followed by the consumer discretionary stocks. The food stocks are a tough nut to crack because of the commodity cost concern and the consumer's ability to spend on luxuries such as burritos and diamonds.

We are selling only one contract for our Option Writer allocation. You may adjust the allocation upward to reflect a larger account size than our $20,000.

Risk Management for CMG
Strike Stop = $ 65.00
Cost Basis Stop = $ 63.40
Technical Stop = $ 65.00
% Above the Strike 4.51%

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