>> in the middle of the session. it did manage to turn around and finish higher. investors see the timpbs here. >> investors clearly view linked in as a differential story. >> i think it's a neat company. >> get with the program. better have a lot of friends because shorting any stock.

>> let's move on here. those results have some investors worried about the consumer's appetite for coffee. and green mountain in particular. green mountain reports on wednesday. believe it or not is less than its historical average. this stock could be the greatest stock of all time. in the debut, greenburg is here to tell you where many believe that could still be the case. he is burning the midnight oil. take it away. >> my debut, i'm so excited. to the bears, this seems to be a business model on borrowed time. the key thing to remember is that it is a one product company. it makes its money off of k-cups and the patents are starting to run out. when the company reports

urnings, pay special attention to margins and sales growth. competitors are already in the market with cheaper k-cup alternatives and green mountain is believed to be slicing prices just to protect their share. >> we have not yet gotten into the longer term im. >> when do these patents start running out and what is their next step if the k-cup becomes essentially a generic prubl. >> in another month or two they start running out.

>> if you're going out there, why wouldn't you pay up for that. then you have all the competition in the market. they are hoping that people go to a v-cup and that replaces the k-cup. it is unclear whether that would really happen. the k-cup is what is there and competition is driving prices down substantially. >> do you think. >> to say that is premium product. we're not talking about gourmet coffee. we're talking about single serve. a basic product. so i think, you know, what you're seeing, again, where you have seen in the past three months.

i have to tell you something else, the jp morgan analysts mention this. fascinating in gene the k-cup, the starbucks branded k-cup went into the starbucks stores. they didn't make a really big deal about that. starbucks getting ready to push its own product. >> you. >> part of that is yes, it's a big part. that is starting to eat into. >> herb brings out a much better taste than i do. the k-cup issue, the patent issue is the most important. like you mentioned, they will run out in september. competition is going to pick up here. that that's. terms of accounting, you have

had inventory mishaps. i don't think these guys will be able to handle formidable competition. >> he is using a one by two put spread. sit a little more complicated so it's good to hit the play book. you buy one put and offset that cost by selling not one but two the lower strike puts. the goal, you want the stock to go to just above the strikes. that's where you make the most money. you may have to buy that stock at the low put strike price. below that level, profits trail off. >> earlier when i looked at the options, i bought the gmcr december 14 my it toal cost

was.30. at 7:00 your profits start to trail off. fortunately you cannot lose more than your premium of 1.30 on the trade even if the stock goes to zero. i will say this. i don't think gmcr is a good short. >> bailed me out when the stocks started to rise. no way, no how. people are not going to to buy a new machine or buy coffee at 30 bucks a pound. normally i wouldn't want to do a one by two. because, this is one of the situations where it will actually work.

i absolutely hate a stock. >> you have made me ashamed of buying k-cups. $30 a pound? no more! no more! >> there is a trade-off. he could be forced to buy green mountain stocks for 7 bucks. we will answer it in our extra right after the show. >> you double your money in a week. how did they do it? what's their next move? find out when options actions

returns. >> time for pump up the volume. names that are heating up the sizzle index this week. the company's new style would be a game changer. betting that the stock is a bargain. who is it? the answer when options action returns. trade commission free for 60 days, plus get up to $600 when you open an account.

plus get up to $600 so i test... a lot. do you test with this? freestyle lite test strips? i don't see... beep! wow! that didn't take much blood. yeah, and the unique zipwik tab targets the blood and pulls it in. so easy. yep. freestyle lite needs just a third the blood of onetouch ultra. really? so testing is one less thing i have to worry about today. great. call or click today and get strips and a meter free. test easy.

and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account.

>> where are options traders pumping up the volume this week? call volume was three times the average daily volume. >> carter went against the fwran and said buy whole foods going into earnings. they made a whole lot more and here is how. >> when options action gave our recipe for a tasty trade. risk less so you can make more and that is exactly what was done with the bullish bet of whole foods. carter thought the share looked healthy. >> we make the bet. >> opportunity in aisle 5, mike thought. but buying the stock would set you back over $8,000. so to spend less, he bought the strike call for $2.85. now to make money, mike needs

whole foods stock to sell by more than the cost of the trade or above $90.35 by august expiration. >> that's more like it. to spend less, mike sold the 92.50 call and created his call spread. >> mike will start to see.

>> mike has capped the gain to the difference of the strike that he bought and the strike of the call that he sold. stocks have rallied 11%, making them winners. now shoppers across the aisles of america have spotted a bargain and they only want to know one thing. >> a wholesome return in any take. can be sold today for 3.50. that's more than double your money. carter got us to the trade.

back to the beach. tata for now. tata right back at you, carter. now that you know what he feels about the trade, what are you doing. >> coming up next, the final call from the options desk. [ male announcer ] the markets keep moving. make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600 when you open an account.

[ male announcer ] trading's like a high-speed train. and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support.

♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account. >> the minister it issed to show off his bell ringing skills but the bell broke off. time now for final call. >> actually this week is all about getting paid with less risk.

>> sit a pretty disgusting process. it's up 64% year to date. and you can't short it. not with your worst enemy's money. i think a really good way to do that is to use long put spreads into the earnings. >> we should note that here at options action we will be on high yeah 'tis for the next two weeks so cnbc can broadcast the olympic games. go to our website. for the very latest in options trading. see you three fridays from now. money in motion is up right after this.