Chipotle could provide investors with a 43% gain

The Burrito Maker Could Deliver Strong Gains to Investors...READ MORE
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A Potential Double-Digit Gain Follows an Earnings Beat

Many consumers remember Chipotle from the news that e-coli made a number of customers sick after eating at stores in Oregon and Washington back in 2015. After that, the chain closed many stores to address food safety concerns.

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The restaurant chain thought the problems were solved but later that year, there was an outbreak of norovirus in Boston and then in July of 2017 another norovirus incident struck in Virginia. Meanwhile, social media users were seeing a cellphone video of rat droppings falling from the ceiling of a Dallas store.

Those incidents all seem to be forgotten as customers are returning to the chain and earnings are strong. The stock price jumped after the most recent earnings announcement and that sets up a potential trading opportunity.

We explain exactly what that opportunity is in our latest article, which includes a specific trade idea based on recent market prices.

This trade could deliver a potential gain of up to 43% while allowing traders to limit risk. This strategy could actually be especially useful in a high-priced stock like Chipotle. The stock recently traded near $580 a share. The strategy we share allows traders to risk $2 a share.

This means traders could benefit from $58,000 worth of stock for about $200. And that is the most that a trader could lose on the position.

All of this information is in our latest free educational article that is available right here.

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