I like this company. I think that they have potential to grow. However, I believe they are going to miss on earnings tonight.
1. Price increase. People don't change prices unless they are meeting expectations.
2. Expansion, they are finally introducing a new Asian themed restaraunt because the numbers on Chipolte are slowing down and they need another source of revenue.
3. P/E value of over 50 is very hard to maintain
4. Just like Apple the expectations are high. I read they need something like 600 customers averaging $8 per day in every restaraunt 365 days a year in order to meet this expectation. Thats a lot of burritos.
I believe there will be a correction in this stock tonight then I will go bullish again.
1. I am playing a calendar spread by SELLING the Oct. $300 CALL and BUYING Nov. $310 CALL.
2. I am also buying a straight Oct $300 PUT.
I like earnings.