Can Starbucks Corporation (SBUX) take down the round-number $50 level?
Since hitting its most recent low of $35.38 in mid-October, Starbucks Corporation (NASDAQ:SBUX) has rallied 39% to trade at $49.27, and touched a record peak of $49.60 in mid-March, but hasn't been able to break out above the half-century mark. Today, ahead of the company's earnings report after the close, traders are betting on that to change. Specifically, options traders appear to be buying to open the May 50 call, anticipating the shares to touch fresh all-time highs by the close on Friday, May 15, when front-month options expire.

On the whole, call buying is running at twice the normal intraday volume. This is just more of the same from SBUX traders, as the equity has amassed a 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.58. Not only does this mean that call buying has more than doubled put buying during the past two weeks, but it is also higher than 86% of similar readings from the past 12 months. An even more extreme reading can be found by looking at the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.52 -- which sits an annual low. This reveals short-term options traders are more call-skewed now toward SBUX than they've been at any other point during the last year.
If Starbucks Corporation (NASDAQ:SBUX) does surge higher following tonight's earnings release, the equity could see a round of price-target hikes, which may provide an additional boost. The security's average 12-month price target only stands at $50.94, just a chip-shot away from current trading levels.