Chipotle Mexican Grill Inc (NYSE:CMG) stock is up 0.9% to trade at $38.94 at last glance, after the fast casual food chain authorized an additional $500 million to buy back shares, bringing the total to $750 million.
CMG is on track for its first gain in the last three sessions, bouncing off a Sept. 11, 52-week low of $38.30. Though the security is today looking to trim a 35.1% year-to-date deficit, it is still trading firmly below all key short- and long-term moving averages.
Options bulls are chiming in today, with 27,000 calls exchanged so far -- double the intraday options volume -- compared to 4,686 puts. The most active contract by far is the September 40 call.
The options pits have been much more bullish than usual over the past 10 weeks. This is per CMG's 50-day put/call volume ratio of 3.95 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than 81% of annual readings.
Options are reasonably priced at the moment, too. In fact, the stock's Schaeffer's Volatility Index (SVI) of 34% ranks in the low 23rd percentile of its 12-month range, meaning options traders are pricing in low volatility expectations.
