27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Bill Ackman said Monday that Chipotle Mexican Grill, Inc. (NYSE:CMG) is imminently fixable and he's hoping the company is going to recover.
Speaking on CNBC, Ackman said he's optimistic, because there are still lines in the stores and the issues the company is facing are addressable through better operations and better oversight. Other restaurants, like McDonald's Corporation (NYSE:MCD) and Burger King had up and down cycles, said Ackman, implying similar cycles are possible for Chipotle.
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Ackman finds Chipotle interesting because he sees it as the least optimized of the quick-service restaurants. The company doesn't have a drive-through, it's not serving breakfast, it's not active abroad and it doesn't have a mobile app, explained Ackman. He added that the mobile app would reduce lines, which are now turning the customers away.
The valuation is cheap if you consider earnings over the next six years, according to Ackman. He emphasized that the company has to recover from the food safety crisis and he explained that almost every fast food company successfully recovered from food safety crisis.
Related Links:
Let's Cut To The Cheese: After Sluggish Q3, Chipotle Still A 'Show Me' Story
Wall Street Remains Sidelined On Chipotle After Disappointing Q3
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.