Sometimes you eat the bread, sometimes the bread eats you!PNRA reported positive earnings last nite and the stock responded with an after hours move of + 8%. This morning it is trading 152ish. Clearly Panera is eating CMG's lunch. This effectively negates our butterfly finishing in the money barring a European disaster over the next three trading days. We will take a look at trade repair after the opening though there likely won't be much to do without initiating new risk. This looks to be just a trade that didn't work. And is a prime example of why trading is not just about picking direction correctly. Money management is imperative. Risking 1% of equity on an idea allows us to be dead wrong and not blow up the house. We could be wrong on 6 of these trades (6.5/1 risk reward)befoe we are right and still be ahead of the game. Of course, we are aimimg for better than 50% which will provide a nice total return on the portfolio.
I'll check back in around 10AM with any thoughts.