|No Recent Quote currently available|
My Portfolio Tracker
One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts. Set yours up today.
Dec 10, 2012 (Marketintelligencecenter.com via COMTEX) -- Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) closed Friday's trading session at $37.85. In the past year, the stock has hit a 52-week low of $17.11 and 52-week high of $71.15. Green Mountain Coffee Roasters (GMCR) stock has been showing support around $36.48 and resistance in the $39.28 range. Technical indicators for the stock are Bullish. For a hedged play on Green Mountain Coffee Roasters (GMCR), look at the Mar '13 $34.00 covered call for a net debit in the $31.05 area. That is also the break-even stock price for this trade. This covered call has a duration of 96 days, provides 17.97% downside protection and an assigned return rate of 9.50% for an annualized return rate of 36.12% (for comparison purposes only). A lower-cost hedged play for Green Mountain Coffee Roasters (GMCR) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Green Mountain Coffee Roasters (GMCR) Jan '14 $18.00 call and selling the Mar '13 $34.00 call for a total debit of $13.20. The trade has a lifespan of 96 days and would provide 17.57% downside protection and an assigned return rate of 21.21% for an annualized return rate of 81% (for comparison purposes only). Green Mountain Coffee Roasters (GMCR) has a current trailing average dividend yield of 0%.
(C) Copyright 2012, Marketintelligencecenter.com. All rights reserved.
Zacks Research is Reported On:
Zacks Investment Research
is an A+ Rated BBB
Copyright 2014 Zacks Investment Research
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm.
Visit performance for information about the performance numbers displayed above.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.