Green Mountain Coffee Roasters (GMCR) is off 8 cents to $18.12 and one investor seems to think good news is brewing ahead of the company’s earnings report. GMCR reports tomorrow afternoon. Shares are drifting lower today and the much of the focus in the options market has been on the March 20 – 29 call spreads. It traded 400X for $2.32 AT 10:05 on ISE. A customer bought-to-open, 2800X so far, according to ISEE data. GMCR tends to see high volatility around earnings, including a 47.8 percent plunge on May 3. The average daily post-earnings move over the past four quarters is 29.2 percent. Weekly 18 straddle currently trades at 20 percent of spot.
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.