Shreve said he went long GMCR on Aug. 6 at $30.64 and plans on closing the position today. He'll look to sell into any strength for a small profit. "At worse, it'll be a break-even trade." Meanwhile, BGC Financial director and technical analyst Roger Volz said he's starting to monitor what represents short-term risk levels to see how prices behave on at test. "The next ledge of support can be found at $29.40 so we'll this juncture I'm in no hurry to explore a re-entry."

On Tuesday, Volz said the revelation about the SEC inquiry could be the beginning of a fundamental shift for Green Mountain Coffee Roasters -- "breathing life into the bears." Volz said it could be a game changer for the stock depending on how fast the company can get the inquiry settled.

He added that the timing of the disclosure could be better, as it occurs uncomfortably close to quarter-end.

"Now fund managers need to look at portfolio weightings, have to ask themselves whether they want to hold this position with this question arising," Volz said.

On Tuesday, GMCR volumes on the put side had been light when the news unfolded.

-- Written by Andrea Tse in New York.

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