Green Mountain Coffee Roasters (GMCR). Just Plain Green For Put Holders Tomorrow.

gmcrputs

GMCR plunged over 40% after hours with the stock trading in the low $28's at one point.  The stock traded as high as $50.05 during the regular session.  A move like this is an option traders dream.  Had you positioned yourself with put options you stand to book a signification profit on GMCR tomorrow.

The $35 puts closed at $.13 they stand to open at around $7 tomorrow.  $130 into $7,000 potentially.

The $30 puts closed at $.04 they could open as high as $2 tomorrow.  $40 into $2,000 potentially.

The $37 puts closed at $.19 they could open as high as $9 tomorrow.  $190 into $9,000 potentially.

The list goes on.  GMCR has moved big in the past, that was the easy part.  The tougher part was positioning yourself.  A strangle or straddle would have worked almost as well as just going puts, although you would lose out 100% on a big move higher, which happened last earnings.

Plenty of traders were positioned for this move as evidenced by the volume at the corresponding strikes.

Stock Options:  There is no other instrument that provides the potential to turn so little into so much in so little time.

 


 

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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