The holiday season is in full swing, and unfortunately for many, so is the winter weather. Here is a trade idea on a company that can physically warm you up and still make you some money: Green Mountain Coffee Roasters (NASDAQ: GMCR).

The Trade: Buy the January $42 calls for $2 or less.

The Strategy: The long call is probably the most basic option strategy and is generally used for a bullish outlook on a stock. The trade can profit if the stock rises and the call premium increases to an amount more than was paid. Maximum profit is theoretically unlimited because GMCR can continue to rise. The maximum loss, on the other hand, is $2 (or whatever was paid) if GMCR finishes below $42 at January expiration. Breakeven is $44 based on a cost of $2 at expiration.     

The Rationale: GMCR has had one heck of a ride over the past year. It was trading around $70 back in February and fell to about $17 in July before recently moving higher again. The company announced a stock buyback program last month, along with better-than-expected earnings. Besides that, GMCR has tremendous growth potential and hasn’t fully expanded its operations internationally yet. It also always seems to have rumors swirling around about a possible takeover.

Taking a look at the stock chart, GMCR just recently broke above some minor resistance around $41 (previous price levels). The stock pulled back on Friday’s sell-off but settled right at the resistance level, which now can be classified as support.

Maintaining that support level is imperative for possible success for this trade idea. Keep in mind trading volume should be relatively light this holiday week.

As of this writing, John Kmiecik did not own a position in any of the aforementioned securities.