Starbucks Shares Push Higher on Restructuring News

Short-term traders have rarely been more call-heavy toward SBUX this past year

Managing Editor
Sep 25, 2018 at 9:41 AM
facebook X logo linkedin


Shares of Starbucks Corporation (NASDAQ:SBUX) are edging higher in early trading, thanks to news the coffee chain's CEO Kevin Johnson sent a memo to employees revealing plans for a corporate restructuring. "We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business" Johnson wrote. At last check, SBUX is up 0.8% at $57.14.

On the charts, Starbucks stock has had a volatile year. The shares in recent months have been pushing higher after their late-June lows near $47.50, now testing the site of their mid-June bear gap. In fact, SBUX has moved back into positive year-over-year territory, though it it's still looking up at its January high near $62.

Looking toward options, the equity's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.72, which ranks in the bottom percentile of its annual range. This means that short-term options traders are unusually call-skewed at the moment.

Lastly, those who want to target the security may want to do so now with options. The stock has a Schaeffer's Volatility Index (SVI) of 18%, which ranks in just the 28th annual percentile. This reveals the security's short-term options are pricing in unusually low volatility expectations at the moment -- a boon to potential premium buyers.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI