Can CMG recover from the post earnings drop?CMG had earnings today which were a beat but apparently less than expectations
of investors and traders. On the 15-minute chart, the indicators support a reversal
with a bounce on the dual time frame RS lines showing a bit of bullish divergence.
Decelerating bearish momentum on the MACD with lines converging under the histogram
suggests a reversal is impending. Further, the mass index indicator is in the reversal
zone but not yet triggering the signal with a drop below the zone. I will take a
long trade of CMG. They say trade what you know, My local CMG is always buzy and
a love either food. I believe that CMG is ready to give me a big rebate on my
patronage. I will take a call option expiring 8/18 striking $2100. I expect to realize
a large profit having done a similar trade on CMG more than once in the past. The expected
premium of $7300 will be about $700 of risk given a stop =loss but I expect a reward
of 4-6 times that if not more.
