Options Brief: Green Mountain Coffee Roasters (GMCR)

GMCR – Green Mountain Coffee Roasters, Inc. – Shares of the specialty coffee and coffee maker company rallied more than 8.9% this morning to secure an intraday high of $27.34 perhaps on news imports of organic coffee into the U.S. and Canada exceeded 93 million pounds last year on rising demand. GMCR’s share price cooled slightly heading into mid-session with the stock currently up 6.37% to $26.70 as of 11:25 am (ET). Investors itching for continued bullish movement in the price of the underlying stock purchased at least 1,800 calls at the July $30 strike for an average premium of $0.36 apiece. Call buyers at this strike price stand prepared to profit should Green Mountain Coffee Roasters’ share price increase another 13.7% to surpass the average breakeven point at $30.36 by July expiration. The overall reading of options implied volatility on the coffee company is higher by 6.5% to 47.75% as of 11:30 am (ET).

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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