Options Update: Chipotle (CMG) & ConocoPhillips (COP)
Chipotle (CMG)
CMG Volatility Elevated Into EPS
CMG is recently up $1.90 to $116.90.
CMG is scheduled to report Q1 EPS on April 23.
Morgan Joseph says "Q108 should mark the first quarter of growth deceleration for CMG. While we believe CMG remains one of the best operators in the industry, we also believe that like its comps, it will eventually fall victim to the recessionary consumer environment."
CMG May call option implied volatility is at 55, puts are at 65. This is above its 26-week average of 48, suggesting larger price risk.
CMG puts are priced higher than calls because CMG is difficult to borrow.
ConocoPhillips (COP)
COP Volatility At 30 As Oil Above $116
COP is recently up $.72 to $84.61.
WTI crude oil futures are down 0.38% to $116.25.
COP over all option implied volatility of 30 is near its 6-month average of 32, suggesting non-directional movement. "
About Paul Foster
Paul Foster is a former member of the Chicago Board Options Exchange with 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers & acquisitions. His writing about the options market has appeared in a wide variety of publications.
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