• Chart of the Day: Green Mountain Coffee Roasters (GMCR)

    by  • April 29, 2013 1:27 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

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    Today’s chart is of Green Mountain Coffee Roasters (GMCR) which engages in the specialty coffee and coffeemaker businesses in the United States and Canada. It sources, produces, and sells approximately 225 varieties of coffee, cocoa, teas, and other beverages in K-Cup and Vue single serve packs; and coffee in traditional packaging, including whole bean and ground coffee selections in bags, and ground coffee in fractional packs.

    Ticker:  Green Mountain Coffee Roasters (GMCR)

    Strategy:  Long Trade

    What I Am Looking At:

    • Outperforming on a year-to-date basis, up more than 37 percent  and up over 230 percent since the July 2012 bottom
    • Daily chart showing tight consolidating triangle formation, indicating possible continuation pattern for an upside breakout move coming
    • $60 round number level appears to be rather significant
    • Just beneath the $60 level is the half-all-time high at $58
    • Reports earnings on May 8th after market closes, may be the needed catalyst to spark shares above these two levels
    • Short interest remains high (25 percent of the float) despite the recent strength in shares
    • Nearly 11 days for shorts to cover themselves based on average daily volume
    • Open interest put/call ratio stands at 2.06 indicating twice as many puts remain open versus calls, which ranks in the 98th percentile of all readings taken during the past year, indicating an extreme in optimism
    • 50-day buy-to-open put/call ratio also showing an extreme in optimism
    • Annual sales growth past 5 years is 62 percent

    Targets:  Round number $70 level which coincides with the 2012 high




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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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