Starbucks Stock Attracts Call Traders with Improved Forecast

At least four brokerage firms have hiked their price targets on SBUX

Digital Content Manager
Sep 14, 2022 at 3:10 PM
facebook twitter linkedin

Starbucks Corporation (NASDAQ:SBUX) is surging this afternoon, last seen up 5.3% to at $92.51, after the coffee chain yesterday hiked its long-term forecast. The company added that it expects to see 5% to 20% annual growth for earnings and revenue in the next three years, amid a business reinvention and CEO change. In response, the security received four price-target hikes earlier, including one from J.P. Morgan Securities to $100 from $96. 

Options traders are chiming in as well, with 99,000 calls and 64,000 puts traded so far, four times the volume that's typically seen at this point. The most popular contract is the September 94 call, followed by the 92.50 call in the same monthly series, with new positions being opened at both. This means investors are betting on more upside for SBUX by the time these contracts expire at the close on Friday.

Shares are today pacing for their best single-day percentage gain since May 13, and earlier surged to their highest level since March. The 60-day moving average is guiding Starbucks stock higher, despite a long-term ceiling at the $94 level. Within the past three months the equity has added 24.5%.

SBUX 60 Day


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1