$GMCR – A Bearish Options Trade On Green Mountain Coffee That Can Give You 40% ROI

Green Mountain Coffee Roasters (GMCR) is a stock that bent David Einhorn over a table and butt-fucked him until he couldn’t walk anymore. Yes, The David Einhorn; who famously shorted the stock and got his ass handed over to him on a silver platter. To all those who don’t know what GMCR is or does, I suggest you take advantage of this thing called The Internet, and Google this bitch.

Lets get straight to The Trade.

GMCR is currently trading in a well-defined range, and I believe it will stay in this range for the next couple of weeks/months. Long-Term, I am Bullish on GMCR. But for now, we can take advantage of this range, and make some quick $$$$$.

GMCR - Daily Chart
GMCR – Daily Chart

Here’s my trade on GMCR:

Buy Oct ’13 Puts on GMCR @ 70 Strike.

The Puts are currently selling for $3.60

My Short-Term Target on GMCR is $70

If GMCR can hit $70 by the end of September 2013, you can easily earn a return of 40% Plus on your investment. Not bad if you ask me.

The Oct ’13 options will give you enough time to get the trade right.

Recommendation: SELL

Price Target: $70

The following two tabs change content below.

Wall Street Fool

Wall Street Fool provides unbiased real-time market analysis and commentary for Stocks, Bonds, Futures, Forex, Fixed Income, and Derivatives markets.
Share

About Wall Street Fool

Wall Street Fool provides unbiased real-time market analysis and commentary for Stocks, Bonds, Futures, Forex, Fixed Income, and Derivatives markets.
This entry was posted in Real-Time Market Analysis, Stocks and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.