Shares of Green Mountain Coffee Roasters have doubled in less than three months, and one investor apparently believes that more gains are brewing.
optionMONSTER's Heat Seeker system detected the sale of 2,828 March 48 calls for $1.92 and the purchase of 5,656 April 55 calls for about $0.96. Volume was below open interest in the March options but above it the April contracts, indicating that an investor is rolling a position forward to stay in the trade for another month while doubling the number of calls at a higher strike.
The trader is closing the March contracts before they expire at the end of next week, likely after profiting from the stock's huge run, and is using the proceeds to buy twice as many April 55 options. The new long calls , which lock in the purchase price of GMCR no matter how much farther it might climb, are looking for the stock to rise above $55 by expiration in mid-April. (See our Education section)
GMCR rose 1.59 percent yesterday to close at $49.18. The coffee company has been running higher since trading below $24 in mid-November but is now approaching potential resistance at the $50 level that goes back to early May 2012.
Total calls in the name outnumbered puts by 3 to 1 in the session.
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