Starbucks Stock Rises on Strong Quarterly Results

Strong U.S. sales boosted profits as Covid-19 concerns hit business in China

Deputy Editor
Aug 3, 2022 at 12:16 PM
facebook twitter linkedin


Starbucks Corp (NASDAQ:SBUX) reported fiscal third-quarter earnings of 84 cents on revenue of $8.15 billion after the close yesterday, both of which topped analyst estimates. Strong U.S. sales helped offset lockdowns in China, especially as prices were raised amid inflation. No fewer than five analysts chimed in with minor price-target hikes after the event, with the highest from Deutsche Bank to $93 from $91. At last glance, SBUX is up 1.7% to trade at $85.17. 

Jumping as high as $86.06, SBUX broke above the 150-day moving average for the first time since January earlier today, though the stock has since moved back below. The shares have been moving choppily higher since their May 12 two-year low of $68.39, though the stock is still down 27.6% year-to-date. 

Despite calls outnumbering puts on an absolute basis, the stock's 50-day put/call volume ratio of 0.69 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is in the elevated 90th percentile of its annual range. This suggests puts being picked up at a much faster-than-usual rate. 

Today, options volume is running at three times the intraday average. So far, 48,000 calls and 31,000 puts have crossed the tape. The weekly 8/5 88-strike call is the most active contract, followed by the August 85 call, with new positions being bought to open at the former. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report
 


 


 
Special Offers from Schaeffer's Trading Partners