Owning those 25 calls locks in the price where the investor can buy the stock, while selling the 30s obligates him or her to unload it for $30 if it goes above that level. The sale of the December puts brought in even more money, but could be painfully costly if Green Mountain drops because the trader is now on the hook to buy shares if they tank below $25.
The net result is that the investor collected $110, 000 to open the position and will collect an additional $5 million if the stock closes above $30 at expiration on Nov. 16.
Green Mountain shares rose 6.29 percent to $23.66 yesterday, but is still down by more than two-thirds in the last year. Shares plunged in May after the company slashed guidance, but have been trading sideways since then. Short interest is also a hefty 38 percent of the float, which could provide a caffeine jolt to the upside.
Total option volume was five times greater than average in yesterday's session.
—By CNBC Contributor David Russell
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David Russell is a reporter and writer for OptionMonster. Russell has no positions in GMCR.