Green Mountain Stock Options Trading Shows a ‘Tell’ on Earnings (GMCR)
Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) is set to report earnings after the closing bell and we are seeing elevated options activity for the FEB-2012 puts and calls. The stock is still down by more than half. Thomson Reuters…
Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) is set to report earnings after the closing bell and we are seeing elevated options activity for the FEB-2012 puts and calls. The stock is still down by more than half. Thomson Reuters has estimate at $0.36 EPS and $1.06 billion in sales.
We have seen over 17,000 Calls trade today and more than 14,000 Puts trade today if you include the weekly and monthly expirations. The average volume of Puts is about 5,000 contracts on days when there is no news. Using the monthly expiration in speculative options pricing shows that options traders are braced for a move of roughly $5 to $6 per share after the earnings report.
What is interesting is that with all of the controversy the stock is up 1.7% at $54.26 ahead of earnings on 3.8 million shares (7.2 million is an average day’s share volume per Yahoo! Finance). The last mid-January short interest showed more than 26 million shares in the short interest.
To make an example… There was the equivalent of $1.4 billion in shares short (static at today’s value) versus a market cap of $8.4 billion.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
