Dan Nathan Sees Unusual Options Activity In Starbucks

On CNBC's "Options Action", Dan Nathan spoke about unusually high call options volume in Starbucks Corporation SBUX. He said there was a lot of short-dated call buying in the name on Tuesday and the call options volume was 2 times that of puts.

Around 20,000 contracts of the October 12 weekly, 59 strike calls were traded during the day and Nathan noticed one block trade. A trader bought 4,000 contracts of the October 12 weekly, 59 strike calls for 24 cents. The trade breaks even at $59.24 at the October 12 expiration or 2.65 percent above the current stock price.