Some optimism is brewing in Starbuck’s (SBUX) ahead of earnings. Shares are up $1.08 to $40.05 after Green Mountain Coffee Roasters (GMCR) surged 16.6 percent on better-than-expected results today. Options on Starbucks are actively traded as well. 36,000 calls and 21,000 puts traded so far. Eight of the ten most actives are August options and about 63 percent of the total volume is in the front-month. August 40s, which are now at-the-money, are the most actives. 7,450 traded against 4,638 in open interest. Aug 41 calls, Aug 39 calls and Aug 39 puts are the next most actives. Meanwhile, implied volatility in SBUX options is up about 13 percent to 36.5 and option prices currently suggest an earnings deviation of approximately 6%, or nearly $2 in reaction to the the news. The company reports after the closing bell, today.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.