Calls Active as Green Mountain Coffee Roasters Pops (GMCR)

Shares of Green Mountain Coffee Roasters (GMCR) are shooting higher this afternoon in what looks to be a massive short squeeze. Currently, shares are up 9.56%, trading at $24.38. The stock has been mired in a six-month downtrend, but appears to be perking up out of its recent range.

With over 34% short interest on GMCR, it looks like a few people are getting scared here. A short while ago, the November $25/30 call spread was purchased 10,000 times for $1.43. Given the respective open interest on both strikes, 2,306 and 7,893, this is clearly new positioning.

The $25 call was purchased at 95% vol, while the $30 strike was sold at 88% vol. 30-day implied volatility is popping 3.2% today, to 94.4%, while 10-day historical vol moves up to 42.45%.

Overall call volume is now running at 2x normal volume with 43,128 contracts traded.

Green Mountain Coffee Roasters, Inc. is engaged in the specialty coffee and coffee maker businesses. The company roasts Arabica bean coffees, including single-origin, Fair Trade Certified, certified organic, flavored, limited edition and blends offered in K-Cup portion packs, whole bean and ground coffee selections.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.