Amid the market turmoil, one stock which has been ever so stealthily marching higher is Green Mountain Coffee Roasters (NASDAQ:GMCR). As it approaches overhead resistance, this stock looks amped up and ready to surge into new territory.

What makes a breakout setup so appealing is the likelihood of follow-through. More often than not, when a stock rises to new highs it attracts a notable amount of fresh capital which results in further upside pressure in the stock.

While GMCR trades upwards of 2.5 million shares a day, offering sufficient liquidity for stock traders of all stripes, the options aren’t as liquid as one would hope. Remember: tight bid-ask spreads make the life of an option trader much easier. When faced with options of a more illiquid nature, traders have two choices: First, they can simply stick to the underlying and buy stock to express their bullish outlook. Second, they can trade the options anyway but focus on using limit orders in an attempt to split the bid-ask spread and achieve a more palatable fill.

One play worth consideration is the simple purchase of an Oct 110 call option if GMCR is able to break above the $110-$111 threshold. It sets up a limit risk and unlimited reward profile that will profit if GMCR continues to rise in coming weeks.

Source: MachTrader

At the time of this writing, Tyler Craig had no positions in GMCR.