Green Mountain Coffee Pre-Earnings Options Activity

Green Mountain Coffee Roasters Inc.

is set to release it's earnings after the bell on Wednesday and a mid-afternoon look at option volume shows 2.5 times the company's average contract volume already changing hands. The largest trade today saw an investor purchase the bullish August "weekly" 20-24 call spread 2,500 times for $0.95. To be profitable, the stock will have to rally at least 13.8% from todays level by this Friday's close. Also recieving interest today are the August 20 calls with more than 4,000 contracts trading and, with 77% of the activity either mid-market or on the offers, also carries a bullish sentiment. A look at the near month at-the-money straddle shows that option traders are pricing in a 24% move in the stock following the earnings release.