Green Mountain Coffee Roasters (GMCR) is seeing another big post-earnings move. Shares, which saw average daily moves in excess of 20 percent in the four quarters prior to today, are up 19.4 percent to $64.20 on heavy volume of 7.7 million shares. Options on GMCR are seeing brisk trading as well. 28,000 calls and 21,000 puts so far. Weekly 65 and 70 calls, which expire after tomorrow, are the most actives. However, the top trades printed early and seem to reflect skepticism that the rally can hold, as one player bought a Jun 50 – 65 put spread for $6.20, 1280X on ISE. Data indicate an opening buyer for a customer account. If so, it’s a bearish play that offers its best payout if shares fall to $50, or a 23.6 percent decline from current levels.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.