A Bullish Starbucks Options Trade

Carter Worth spoke on CNBC's "Options Action" about Starbucks Corporation SBUX. He thinks that the stock is going to move higher after the recent pull back.

Worth explained that Starbucks jumped 20 percent in the period from March to early June, but then it pulled back 10 percent. It is now trading at a key support level and Worth believes that the stock is about to move higher.

Mike Khouw wants to use options to make a bullish trade. He wants to buy the September 60/65 call spread for $1.20. The trade breaks even at $61.20 or almost 5 percent above the current stock price. If Starbucks jumps to $65 or higher at the September expiration, the trade is going to reach its maximal profit of $3.80.