Green Mountain Coffee Roasters (GMCR) sees an afternoon spike and is up 9 percent to $26.35 on reports the company is teaming up with Costco’s Kirkland brand to create K Cups for Keurig single cup brewers. Shares are rallying and options volume is running GMCR is 2.5Xthe daily average. 51,000 calls and 44,000 puts. The top trade is a 4070-lot of the Weekly (11/9) $25 puts traded for 85 cents when the market was 78 to 88 cents. 10,733 traded against no open interest. Looks like some investors might be skeptical today’s rally will hold through next week’s expiration and are buying the 11/9 $25 puts on Green Mountain. SBUX reports tonight after the closing bell. GMCR reports Nov 27.
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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.