Limited climb seen for Green Mountain
Chris McKhann | [email protected]
GMCR is down 0.13 percent this morning at $23.28 after trading above $33 three weeks ago, its highest level since gapping lower at the start of May. The specialty-coffee producer fell to $17.11 in late July, its lowest level since July 2009. Shares were above $96 at their 52-week highs last October.
A trader sold 4,497 October 27 calls for the bid price of $0.41, according to optionMONSTER's systems. The volume was about twice the open interest, so this was a new position.
The call selling is a bet that GMCR won't be above $27 in the next 17 days. These may have been sold naked with an initial bearish bias or traded against long shares in a covered call position. The latter strategy would be bullish up to the strike price, where the maximum gain is realized, but not beyond. (See our Education section)