Deciding on Beef vs Chicken in Chipotle Mexican Grill

Decision, decisions, decisions.

This morning I found myself in a situation of true conflicted thought in my current $CMG trade. It is my only short position at the moment and I have a 380/375 July 6 weekly Collar on the trade. Here is a quick breakdown of the trade:

  • I am short the stock from June 27 at 412
  • I am short the July 6 weekly 375 Put
  • I am long the July 6 weekly 380 Call
  • The above Collar cost me $.80 to put on June 29

This morning out of the gate the stock was running and I was monitoring the option chain closely. The 380 call got as high as $8 and was so tempting to sell. I considered buying back the short 375 put as well.

So, do I choose Beef or do I choose Chicken? LoL

I ultimately did nothing – one benefit of having a Collar on in the first place is to just let the position ride. But I have continued to review the situation and make notes in my Trading Journal. Did I miss my chance to profit on the call? Did I miss my chance to uncover the short stock position by buying back the put?

It will certainly be exciting to see how it plays out. One thing to note here is these options expire Friday. So If I get a chance to take the collar off, I will be able to do it all over again for next week.

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