NEW DIRECTIONAL CALL PLAYS
Green Mountain Coffee Roasters - GMCR - close: 81.15 change: -1.12
Stop Loss: 77.95
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on February 5th
New Positions: Yes, see below
Why We Like It:
GMCR is in the consumer goods sector. The company is known for its single-cup coffee packs and brewing systems. GMCR does have its critics and it is the shorts that could drive the stock higher. Right now shares of GMCR have spent the last couple of weeks consolidating sideways in the $78.00-81.50 zone. A breakout could spark some short covering. The most recent data listed short interest at 46% of the 128 million-share float.
I am suggesting a trigger to buy calls at $81.75, which would be a new four-month high. If triggered our target is $88.00.
We will plan on exiting prior to the earnings report in early February.
FYI: The Point & Figure chart for GMCR is bullish with a $98 target.
Trigger @ 81.75
- Suggested Positions -
Buy the Feb $85 call (GMCR1422B85) current ask $3.50
Entry on January -- at $---.--
Average Daily Volume = 2.3 million
Listed on January 22, 2014