• Chart of the Day – Reader Request Edition: Green Mountain Coffee Roasters (GMCR)

    by  • February 20, 2013 2:12 pm • Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart comes courtesy from a number of reader requests for 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 11 percent and up 170 percent since the July 2012 bottom
    • Underperforming on a year-over-year basis, down 33 percent
    • $60 round number level appears to be next target over intermediate to longer-term
    • Recent bounce from the 40-day moving average, 0 percent year-to-date level, and the 50 level on relative strength index (RSI) could be start of a new leg up
    • Heavy March call open interest resides at the 45-strike, possible delta-hedge could create a tailwind for shares in the short-term
    • March implied volatility is at cheapest level during past 52 weeks
    • Short interest peaked and falling since last November but still represents a lofty 21 percent of the float, could be in short-covering mode
    • 5 out of 9 analysts rate the shares a “hold” or worse, potential for upgrades

    Targets:  Short-term target of $51.33, triple the 2012 low, longer-term target $60.


    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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