NEW DIRECTIONAL CALL PLAYS
Green Mountain Coffee Roasters - GMCR - close: 24.23 change: +0.45
Stop Loss: 23.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
Stocks look weak but the S&P 500 could produce a strong bounce off the 1400 level. If that happens we might see a short squeeze in GMCR. The most recent data listed short interest at 37% of the 127 million-share float.
There is short-term technical resistance at the 50-dma. I am suggesting we open small bullish positions if GMCR trades at $25.50 or higher. If triggered our target is $29.50.
Trigger @ 25.50 *Small Positions*
- Suggested Positions -
buy the NOV $27 call (GMCR1217k27) current ask $0.58
Entry on October xx at $ xx.xx
Average Daily Volume = 6.0 million
Listed on October 24, 2012