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Green Mountain Is Going Crazy Again

Myles Udland   

Green Mountain Is Going Crazy Again
Stock Market1 min read

Shares of Keurig Green Mountain are going crazy again.

In afternoon trade the stock is up more than 5% on no news.

gmcr

Yahoo

This is the second time in a week the stock has risen sharply, rising more than 8% into the close last Friday. That move had traders scratching their heads.

Risk Reversal's Dan Nathan told CNBC on Monday that Friday's action was curious, and said that it became a situation where "buying begets buying."

On Monday, Keurig Green Mountain announced an agreement with Subway to bring the company's Keurig single-cup coffee brewers to Subway restaurants in North America.

A nice partnership for the company, but not the kind of deal that drives a stock up 8%.

Last Friday, the trading in question was the buying of $120 call options set to expire tomorrow. A call option is a contract that allows an investor to buy a stock at a set price at a future date.

Today on Twitter, Joe Kunkle, founder of OptionsHawk.com, noted that activity in Keurig Green Mountain is again notable. Kunkle said that today, traders are buying $135 calls expiring in July.

Keurig Green Mountain has been one of the most controversial stocks in the market, and in the past has been a short idea of hedge fund manager David Einhorn.

Shares of Keurig went wild in January after Coca-Cola announced a 10% stake in the company.

Once again, we'll be keeping an eye out.

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