Put Volume Surges on Green Mountain Coffee (GMCR)

Shares of Green Mountain Coffee Roasters GMCR are going rancid this afternoon after Starbucks SBUX said that it is looking to enter the single-serving coffee business. Shares of GMCR are currently off by 8.55%, trading at $40.33. While the move is notable, shares are still trading well above the 50-day and 200-day moving averages, roughly $36.25 and $32.50, respectively. Therefore, it is safe to say that shares could see some follow through on the downside over the coming weeks. Options volume is surging on the put side as well with over 29,000 put contracts trading on the session so far. This compares to 19,000 calls and a daily average put volume of roughly 19,000 contracts. The heaviest action is coming in the Feb and Mar contracts. Green Mountain Coffee Roasters, Inc. is engaged in the specialty coffee and coffee maker businesses. The company operates in two business segments: the Specialty Coffee business unit (SCBU) and the Keurig business unit. SCBU sources, produces and sells more than 200 varieties of coffee, cocoa, teas and other beverages in K-Cup portion packs and coffee in more traditional packaging, including whole bean and ground coffee selections in bags and ground coffee in fractional packs, for use both at-home and away-from-home.