Calls Hot As Starbucks and Keurig Brew End-of-Week Gains

DAVIDsTEA Inc. (NASDAQ:DTEA) -- up 45.7% in its public trading debut -- isn't the only hot drinkmaker today. Coffee stocks are also picking up steam. Two of the coffee names gaining ground -- and seeing accelerated call volume -- are  Keurig Green Mountain Inc (NASDAQ:GMCR) and Starbucks Corporation (NASDAQ:SBUX). At last check, GMCR was 3.6% higher at $86.42, with SBUX adding 1% to trade at $52.26. 

In GMCR's option pits, calls are crossing at 1.6 times the rate normally seen at this point in the day. The two most popular contracts by far are the weekly 6/5 84- and 87-strike calls, which traders are seemingly buying to open. By doing so, they're betting on extended gains above the strikes by the close today, when the options expire. 

Coming into today, it was put buying that dominated GMCR's option pits. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.15 is only 2 percentage points from an annual bearish peak. 

SBUX, meanwhile, has seen call volume nearly double put volume today, as traders appear to be buying to open the weekly 6/12 52.50-strike call. These speculators are betting on the shares to top $52.50 -- which would be an all-time high -- by next Friday's close. 

Looking back, SBUX option traders are more call-skewed than usual, at least when targeting options expiring in three months or less. This is clear when looking at the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.82, which ranks in the 28th percentile of its annual range.