Why Analysts, Options Traders Are Targeting Starbucks Stock

Options volume is running at six times the intraday average

Deputy Editor
Aug 2, 2023 at 10:24 AM
facebook X logo linkedin

Starbucks Corp (NASDAQ:SBUX) stock is higher this morning, last seen up 1.6% at $102.84 following the company's fiscal third-quarter earnings report. The coffee concern announced earnings per share of $1 on revenue of $9.17 million, with the former beating forecasts while the latter fell shy of expectations. Plus, the company reaffirmed its fiscal 2023 forecast.

Options volume is running at six times the intraday average in response. So far, 54,000 calls and 30,000 puts have crossed the tape. The weekly 8/4 103-strike call is the most active contract, followed by the 102-strike call in the same series.

This denotes a shift in sentiment, per SBUX's Schaeffer's put/call open interest ratio (SOIR) of 1.07 that stands in the 99th percentile of annual readings. Conversely, the equity's 50-day call/put volume ratio of 2.39 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is higher than 83% of readings from the past year.

Analysts are split on how to play Starbucks stock. RBC raised its target price by $1 to $110, while Stifel, Wedbush, Jefferies, and Barclays all issued negative price revisions. Meanwhile, the current 12-month consensus target price of $114.73 is a 12% discount to the security's current perch.

On the charts, the 240-day moving average saved the security's early morning pullback. The shares boast a 22.3% year-over-year lead, but sport a much thinner 3.4% year-to-date gain.


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