GMCR has outperformed for the last 3 years. Now that the sales could be seen slowing I am taking both sides using options. They are reporting earnings soon, so I have taken a straddle of 29 Put and 30 call.
They have done many splits in the last 2 years so they don't want the stock to look too expensive. Some times it is numbers and sometimes it is percentages.
At P/E of 55, if any signs of growth seems to be slowing again, we could see this at $21... On the other hand if they can still show consistent growth, we can see this soon at 35. With a straddle and a high swinger, we may definitely win.. I know it is an OxyMoron statement, but that's the way the market now is...
Disclosure: hold options 29 Put and 30 Call