NEW DIRECTIONAL CALL PLAYS
Green Mtn Coffee Roasters - GMCR - close: 55.06 change: +0.84
Stop Loss: 52.95
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
Shares of GMCR weathered the market sell-off this morning pretty well. Traders bought the dip and this stock revered to close up +1.5%. Not only that but GMCR managed a bullish breakout past round-number resistance at the $55.00 mark. If this rally continues GMCR could see a short squeeze. The most recent data listed short interest at 37% of the 129 million-share float.
Now a six-cent "breakout" past the $55.00 level is not very convincing. Therefore I am suggesting a trigger to buy calls at $55.25. If triggered our short-term target is $59.75.
Trigger @ 55.25
- Suggested Positions -
buy the Apr 57.50 call (GMCR1320D57.5) current ask $1.45
Entry on March -- at $---.--
Average Daily Volume = 3.4 million
Listed on March 18, 2012