What the Options Market Tells Us About Chipotle Mexican Grill

Deep-pocketed investors have adopted a bearish approach towards Chipotle Mexican Grill CMG, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in CMG usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 19 extraordinary options activities for Chipotle Mexican Grill. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 36% leaning bullish and 63% bearish. Among these notable options, 12 are puts, totaling $474,677, and 7 are calls, amounting to $279,520.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $46.0 to $60.0 for Chipotle Mexican Grill during the past quarter.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Chipotle Mexican Grill's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Chipotle Mexican Grill's whale trades within a strike price range from $46.0 to $60.0 in the last 30 days.

Chipotle Mexican Grill 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Chipotle Mexican Grill

Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $9.9 billion in 2023. The Mexican concept is predominately company-owned, although it recently inked a development agreement with Alshaya Group in the Middle East. It had a footprint of nearly 3,440 stores at the end of 2023, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.

Having examined the options trading patterns of Chipotle Mexican Grill, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of Chipotle Mexican Grill

• With a trading volume of 6,598,692, the price of CMG is up by 1.88%, reaching $54.72.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 59 days from now.

What Analysts Are Saying About Chipotle Mexican Grill

5 market experts have recently issued ratings for this stock, with a consensus target price of $65.0.

• An analyst from Stephens & Co. downgraded its action to Equal-Weight with a price target of $61.
• In a positive move, an analyst from Wedbush has upgraded their rating to Outperform and adjusted the price target to $58.
• An analyst from Truist Securities persists with their Buy rating on Chipotle Mexican Grill, maintaining a target price of $69.
• Maintaining their stance, an analyst from Deutsche Bank continues to hold a Buy rating for Chipotle Mexican Grill, targeting a price of $67.
• An analyst from Stifel persists with their Buy rating on Chipotle Mexican Grill, maintaining a target price of $70.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Chipotle Mexican Grill options trades with real-time alerts from Benzinga Pro.