For those who aren’t aware, in our trading room at TradingAddicts.com we use the term “YOLO” when we speak of weekly option trades. You only live once, throw on this very unlikely trade, making sure to bet small. Some refer to these as Lotto Trades. Like a lottery, your chances of winning are small, the payouts can be huge.
Yesterday, the Option Addict himself spotted a setup in Chipotle, $CMG. The man has a serious love hate relationship with this particular stock, but when he takes a long, I take note.
Against my better judgement, I took the trade along with him, adding to it as it fell yesterday, against my better judgement once again. Overnight we got news that CMG is hiring the CEO of Taco Bell and the market received this news well.
Burrito Chain Rallys In Overnight Trade
CMG is set to open up around $280 as I type this, I am deep in the $262.50 calls expiring Friday thanks to the master burrito trader.
These types of trades and huge gains are why we play this game. I get this thing where I feel sick when I am in a big winning short term trade, much like I feel after I eat too much at Chipotle.
Be My Valentine.
OC