Are you looking for a stock to short or buy puts on that has a ridiculous valuation and is likely to crash? Let me introduce you to the most richly valued tech stock on Earth, Chipotle. Yes, the burrito company trades at a nose bleed valuation that puts ARKK stocks to shame. I put $150,000 down today and am expecting to cash out a millionaire from just this play alone next week. In case you’re wondering, Chipotle is still 35% off it’s lows from just 2 months ago.
The bull case for Chipotle is that they have pricing power and a lot of loyal customers. That won’t mean anything once those rate hikes kick in and every restaurant gets back their pricing power.
Oh and by the way, have you read the headlines regarding Chipotle employees looking to unionize that came out today? Or about how they permanently closed the first restaurant that voted unionize last month?
https://finviz.com/quote.ashx?t=CMG
Do your own research, but common sense will prevail on this stock very soon.
Position: 100 Contracts, 1600p strike expiring 9/2.
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