Market Overview

Dan Deming's Starbucks Options Trade

Share:

Speaking on Bloomberg Markets, Dan Deming of KKM Financial suggested an options strategy in Starbucks Corporation (NASDAQ: SBUX) ahead of earnings report, which is scheduled on Thursday.

Deming noticed that implied volatility in weekly calls is elevated and he wants to sell the April 61.50 call and buy the May 61.50 call for a total cost of $0.16. He explained that if the stock stays at its current level or trades lower, he can capture the premium decay in the April 61.50 call. If the stock rallies, Deming is going to cover the April 61.50 call and he is going to try to participate in the potential upside with the longer dated call option.

Posted-In: Bloomberg Markets Dan DemingOptions Markets Media

 

Related Articles (SBUX)

View Comments and Join the Discussion!
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

Jim Cramer Gives His Opinion On Tesla, Pfizer And UnitedHealth

Jim Cramer Shares His Thoughts On United Rentals, US Concrete And Kinder Morgan