The “earnings crush” delivered again.
Chipotle Mexican Grill (NYSE: CMG) reported strong earnings after the bell on April 24th. The stock initially sold off but recovered about half the drop to net a 4% post-earnings loss.
As a numbers trader, I liked what I saw after the CMG announcement…
- the Implied Volatility (IV) rank in the options remained robust at 34%
- the IV was greater then historical volatility in the stock…a rarity for stocks after earnings
- premiums looked overpriced
Given the market’s current low-volatility environment, this is a notable post-earnings ranking that suggests there is more volatility to be “crushed.”
We made the trade.
Watch my latest video to see how we ended up with $1,120 of Chipotle cash profits and a 47% return in just 21 days. The “earnings crush” delivered again.
About The Author
Meet Jon Lewis, With over 20 years of real experience, teaching AND trading, Jon will help you learn to use options profitably and safely in portfolios of any size.
His advantage, and now yours, is using simple, often overlooked spread options strategies which generate consistent income without significant risk.