Keurig Green Mountain Falls Further; Bears Take Notice

Keurig Green Mountain Inc (GMCR) has been trending lower since November

Digital Content Group

Mar 25, 2015 at 10:58 AM

GMCR

Keurig Green Mountain Inc (NASDAQ:GMCR) has been in a downtrend since touching an all-time high of $158.87 on Nov. 18, giving back roughly a quarter of its value. The disappointing trend is continuing today, with the shares off 2.9% at $120.36, and speculators are betting on more downside, picking up puts at a rapid-fire rate. The contracts are crossing at twice the normal intraday pace, and account for nine of GMCR's 10 most active options.

The contract garnering the most attention is the weekly 3/27 121-strike put. Data here suggests buy-to-open activity, with speculators looking to profit on a move further south of $121 by Friday's close, when the options cease trading. GMCR has fallen as low as $119.77 today.

It's usually calls that attract speculators in the stock's options pits. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), options traders have bought to open nearly two calls for every put. The resultant call/put volume ratio comes in at 1.97, higher than 84% of all such readings from the past year.

Checking in on the Street, analysts have mixed feelings for Keurig Green Mountain Inc (NASDAQ:GMCR). Seven brokerage firms rate the shares a "buy" or better, with the other seven handing out "hold" or worse recommendations. What's more, GMCR could be in line for price-target cuts if it doesn't turn things around. The stock's consensus 12-month price target of $139.91 is a 16% premium to current levels

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.