(Option Investing) New IPO You Should Look At

Stock Market Option Trading

Option Investing: Peter Lynch is given credit for telling investors to invest in things they know.

It can be good advice, but not always. Just because you fly United Airlines every week and the planes are usually full does not mean that you should buy the stock.

But this idea of buy what you know can reap huge rewards if you find a new, small company that is a local favorite and just getting set for explosive growth.

Take Starbucks for instance. If you lived in Seattle and saw how well it was doing before it went nationwide, you could have made a fortune if you bought shares when it went public.

Today I have a stock that just went public this week. Most of you haven’t heard of this company, but if you have it’s because you have eaten here or someone was raving about the place.

Meet Chuyey’s

The stock is CHUY and the company is Chuyey’s.

It’s a Mexican restaurant with a unique flavor. It’s not pure Mexican, and although it is a chain with 36 stores at this point, each restaurant is different.

The chain started in Austin and has a distinct Austin feel. But they are now in 8 different states.

DISCLOSURE: I bought some shares today and plan on buying more as time goes on. I really enjoy the food there and try to go when I get a chance. (The closest store to me is 30 minutes away.) Every store I have ever been to is busy, almost all the time. In fact, I asked them if they were a franchise because I definitely would have bought some. But they don’t sell franchises. Every store is corporate owned.

The stock just started trading this week and I stumbled upon it today by looking at charts of stock that are hitting their all time highs.

If you are looking for a small company that has the potential for explosive growth, take a look at this one. They are in a part of the country that wasn’t hit as hard by the recession and they continue to add new stores. They could easily quadruple the number of stores in the markets they current serve without being saturated.

This is one I am very excited about.

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