Carter Worth And Mike Khouw Are Still Bearish On Starbucks
On September 9, Carter Worth and Mike Khouw recommended a bearish position in Starbucks Corporation (NASDAQ: SBUX). They revisited the trade on Friday on CNBC's Options Action and they suggested what to do next.
The stock traded at $54.35, when Khouw recommended a purchase of the November 55 put for $2.20. The trade breaks even at $52.80 and the stock is currently trading at $53.46. It has to drop more than 1.23 percent at the November expiration for the trade to be profitable.
The put is currently trading above its purchase price and Khouw considered rolling it to December and replacing it with the December 52.50/50 put spread, but he decided to stick with the current trade. Worth and Khouw believe Starbucks is going to continue to trade lower and they want to hold their short position.
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