Unusual Options Activity: Starbucks (SBUX)

Coffee

Coffee chain
Starbucks (SBUX) is down 17% over the past year, as same-store sales in the U.S. have considerably slowed. One company expects shares to trend higher over the next month.

  • Special: 32,481% Growth: The SmartPhone Startup Outpacing Apple and Samsung
  • That’s based on the July 12 $82 calls. With 30 days until expiration, 8,367 contracts traded compared to a prior open interest of 129, for a 65-fold rise in volume on the trade. The buyer of the calls paid $2.05 to make the bullish bet.

    Starbucks shares recently traded for about $81.50, making this an at-the-money trade. Shares are closer to their 52-week low of $71.80 than their 52-week high of $107.66.

    • Bill O'Reilly Interviews Wall Street Expert to Help YOU Achieve the American Dream

      "We're going to bring back the American Dream... bigger, better, bolder, richer, safer, and stronger than ever before." - President Donald Trump

      During Trump's first term, 8 million Americans became millionaires despite constant resistance from Democrats and even some Republicans in his cabinet.

      Now, with Republicans controlling both houses and the Fed cutting rates, everything is aligned for even greater growth.

      Bill O'Reilly interviews investment expert Alexander Green who reveals details on 6 stocks with the potential to soar under Trump's pro-business policies.

      Get the Details Right Here

    Starbucks hit its 52-week low in early April, and has been trending higher since.

    The company saw earnings slide 15% over the last year, and revenues dropped by 2%. A potential turnaround play is underway to improve same-store sales, and continue to expand internationally.
    Action to take: With Starbucks now in an uptrend, today’s buyers can likely see low-double-digit returns in the coming months. Plus, shares now pay a 2.8% dividend.

  • Special: The Crypto that Could Replace Visa?
  • For traders, a continued rally higher from here are why the July 12 $82 calls have become popular.

    Based on their current price, they could see high-double-digit returns, or even provide investors with a 100% gain or more, depending on how much shares continue to rally in the coming weeks.

     
    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.