Chipotle Fares Well too

Chipotle (CMG) reported earnings of $1.19 a share, same store sales of 4.3%, and projected same store sales growth in the mid-single digits.  Chipotle now operates 976 stores and will be reaching 1,000 along with its first international store opening in London.  The stock has popped significantly to the upside, after being up 2% yesterday during the day, it is up another 12% this afternoon to $142.

This makes my short January put at a strike of $110 look pretty safe, with the premium all the way down to $4.50 from the $10.70 I sold it for.  It now looks like a given that Chipotle will overtake its all time highs around $150.  However, from a valuation perspective I think that the run-up today is overdone and I will not be rolling up my put.  I'll be happy to put up the $1,550 in margin to keep the extra $450 at the end of the year.

This run-up today makes Apple's valuation at $250 look cheap in comparison.