Green Mountain Coffee Roasters (GMCR) is off 15 cents to $25.94 and still reeling from its earnings mishap. Shares plummeted 47.8 percent on 5/3 and have been unable to stage any meaningful rally attempts since that time. Morning options trade on the stock include a Jan 26 – 40 call spread for $4.10, 1000X, and is possibly a bet that a rebound in brewing and GMCR will recapture some of the recent losses through yearend. A move to $40 (higher strike of the spread) represents a 60 percent retracement of the post-earnings loss.
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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.