Options Check-Up: Dunkin' Brands, Krispy Kreme, Keurig Green Mountain

Analyzing recent option activity on Dunkin Brands Group Inc (DNKN), Krispy Kreme Doughnuts (KKD), and Keurig Green Mountain Inc (GMCR)

by Griffin Kruse

Published on Feb 3, 2015 at 8:11 AM
Updated on Jun 24, 2020 at 10:16 AM

Among the stocks attracting attention from options traders lately are doughnut makers Dunkin Brands Group Inc (NASDAQ:DNKN) and Krispy Kreme Doughnuts (NYSE:KKD), as well as coffee concern Keurig Green Mountain Inc (NASDAQ:GMCR). Below, we'll break down how options traders are positioning themselves, and how much speculators are willing to pay for their bets on DNKN, KKD, and GMCR.

  • Despite a strong start to the year, DNKN shed 2.2% yesterday to close at $46.26. Meanwhile, sentiment in the options pits is nearing an optimistic peak ahead of this Thursday morning's fourth-quarter earnings report, with Dunkin Brands Group Inc's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 25.84 sitting higher than 96% of all similar readings taken in the past year. Traders are currently paying a pretty penny for their pre-earnings bets on DNKN, with its Schaeffer's Volatility Index (SVI) of 30% sitting in the 83rd percentile of its annual range.

  • Shares of KKD have put in an uninspiring performance in 2014 -- down 2% year-to-date, including a 0.7% fall yesterday that brought the stock to $19.34. Surprisingly, sentiment in the equity's options pits is bullish, with Krispy Kreme Doughnuts' 50-day ISE/CBOE/PHLX call/put volume ratio of 3.35 sitting in the 94th percentile of its annual range. Additionally, short-term options for the stock are available at bottom-of-the-barrel prices -- relatively speaking -- per its SVI of 31%, which sits lower than 91% of all other comparable readings taken in the past 52 weeks.

  • GMCR has also been trending lower, with the stock losing about 21.4% since hitting an all-time high of $158.87 on Nov. 18 to trade at $124.82. Sentiment in the equity's options pits is divided in the lead-up to tomorrow evening's fiscal first-quarter earnings report, with Keurig Green Mountain Inc's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.85 sitting in the middling 55th percentile of its annual range. Although earnings are looming, near-term options for GMCR are available for relatively fair prices, as its SVI of 56% rests higher than just 51% of all similar readings taken over the past year.

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