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Archive for April, 2009

Chipotle (CMG/CMG-B): Pairs Trade

In Pairs Trade on April 23, 2009 at 3:19 pm

Author: ajalper

Chipotle’s A shares are currently trading at a 20-24% premium to its B shares. This spread is near its previous historic extremes. The A shares have a high probability of returning to a 7-10% premium within the next two months if not sooner.

I am currently long CMG-B and long the equivalent underlying dollar value of CMG $100 May Puts.