Sometimes, I miss trades, because I am at a meeting, on the phone or away from my desk.  Every Morning when I wake up the first thing I do is turn on CNBC.  I watch to see the stocks that are moving in  pre-market trading.  I saw GMCR has been on fire on a possible short and squeeze.  So, then I went to my Unusual Options Activity scanner and noticed a trader bought 5517 GMCR April 55 Calls for $.96.  This was the biggest order over the last 10 trading days.  Let me show a breakdown of how much money this trader made.

Paper bought 5517 April 55 Calls for $.96
(Paper is an order from a hedge fund, mutual fund, retail bank, or BIG trader)
Risk: $96 per a lot
Reward: Unlimited
Breakeven: $55.96
Cash Outlay for this Trade: $529,632

Greeks of this Trade:
Delta: Long
Gamma: Long
Vega: Long
Theta: Short

On 3.11.2013, these Calls are worth $2.50, so lets breakdown this
trades Profits.

$2.50- $.96 * 100 * 5517=  $849,618

If a trader risked $1,000 on this trade and bought 11 Options they would have netted $2,500

If a trader risked $5,000 on the trade and bought 55 Options, they would netted $12,500

This is just another example of trading with the BIG money and Hedge funds in the BEST Live Trading Room http://bit.ly/108XTgh as I breakdown over 2,000 trades in a day and also tweet them on our Premium Twitter feed http://bit.ly/WmtfI4

By the way, SEC leave those HNZ traders alone.

Paper bought 1000 .OSX April 235 Puts for $3.60 (5.0 times usual volume) when stock was trading $243.22
Paper bought 800 MCHP March 37 Puts for $.47 when stock was trading $36.83
Paper bought 2450 FCN June 32 Puts for $1.325 (6.4 times usual volume) when stock was trading $34.46
Paper bought 3988 DB April 42 Puts for $1.15 (2.4 times usual volume) when stock was trading $44.07
Paper bought 214,819 EEM April 43.5 Puts for $.61 (2.7 times usual volume) when stock was trading $.61

Paper bought 4200 HALO June 7.5 Calls for $.65 (6.6 times usual volume) when stock was trading $.65
Paper bought 7596 HOT March 65 Calls for $.13 (4.9 times usual volume) when stock was trading $62.63
Paper bought 1300 END April 2.5 Calls for $1.70 when stock was trading $3.90
Paper bought 300 FSYS April 17 Calls for $.50 (6.3 times usual volume) when stock was trading $16.33
Paper bought 1627 STI July 31 Calls for $1.25 (3.1 times usual volume) when stock was trading $29.69

Paper bought 29,694 TJX March 30 Calls and Sold April 30 Calls for $.60 credit (10.6 times usual volume) when stock was trading $44.95
Paper bought 8900 DF June 14 Puts for $.20 (7.1 times usual volume) when stock was trading $17.68
Paper bought 1627 STI July 31 Calls for $1.25 (3.1 times usual volume) when stock was trading $29.69
Paper bought 7596 HOT March 65 Calls for $.13 (4.9 times usual volume) when stock was trading $62.63
Paper bought 6725 CACI June 50 Puts and Sold March 50 Puts (34.5 times usual volume) when stock was trading $2.05

Options with 40 days to trade are currently implying a $2.85 range from now until expiration at a 68% confidence level. Meaning that there is roughly 19% upside or downside by April expiration, according to market prices. On a related note, the May 2013 $12 puts have over 62,000 options open; this may have a significant pull on the stock and serve as a magnet lower.

The name is an Ackman long and considering the challenges of turning around a 3 billion dollar company, this story will not go away any time soon.

Below is the JCP chart.

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salerno.mark.a@gmail.com