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Chipotle Mexican Grill Inc (CMG) began trading new options today, set to expire in July 2026. Investors can now access a put contract at a strike price of $25.00, currently bid at 86 cents, representing a 27% discount to the stock’s current trading price of $34.05. The estimated odds of this option expiring worthless are approximately 82%, potentially yielding a 3.44% return on cash commitment, or 5.53% annualized.
Additionally, a call contract at the $37.50 strike price has a bid of $1.62, allowing investors who purchase shares at $34.05 to commit to selling at $37.50. If exercised, this would provide a total return of 14.89% at expiration. There is a 52% chance this covered call could expire worthless, offering a potential additional return of 4.76%, or 7.65% annualized.
The implied volatility on the put contract is 61%, while for the call contract, it’s 44%. The actual trailing twelve-month volatility is calculated at 40% based on recent trading data.
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