Investors with a lot of money to spend have taken a bearish stance on Starbucks (NASDAQ:SBUX).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with SBUX, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 25 options trades for Starbucks.
This isn't normal.
The overall sentiment of these big-money traders is split between 20% bullish and 80%, bearish.
Out of all of the options we uncovered, 24 are puts, for a total amount of $2,289,431, and there was 1 call, for a total amount of $67,777.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $85.0 and $90.0 for Starbucks, spanning the last three months.
Analyzing Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Starbucks's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Starbucks's significant trades, within a strike price range of $85.0 to $90.0, over the past month.
Starbucks Option Activity Analysis: Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SBUX | PUT | TRADE | BULLISH | 06/21/24 | $2.73 | $2.63 | $2.63 | $85.00 | $129.1K | 36.7K | 4.2K |
| SBUX | PUT | TRADE | BEARISH | 06/21/24 | $2.68 | $2.44 | $2.63 | $85.00 | $127.2K | 36.7K | 2.9K |
| SBUX | PUT | TRADE | BEARISH | 06/21/24 | $2.57 | $2.35 | $2.57 | $85.00 | $126.4K | 36.7K | 1.1K |
| SBUX | PUT | TRADE | BULLISH | 06/21/24 | $2.66 | $2.6 | $2.6 | $85.00 | $126.1K | 36.7K | 7.8K |
| SBUX | PUT | TRADE | BEARISH | 06/21/24 | $2.67 | $2.48 | $2.62 | $85.00 | $124.7K | 36.7K | 5.0K |
About Starbucks
Starbucks is one of the most widely recognized restaurant brands in the world, operating more than 38,000 stores across more than 80 countries as of the end of fiscal 2023. The firm operates in three segments: North America, international markets, and channel development (grocery and ready-to-drink beverage). The coffee chain generates revenue from company-operated stores, royalties, sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee sales, and single-serve products.
Where Is Starbucks Standing Right Now?
- With a volume of 153,010, the price of SBUX is down -0.23% at $87.64.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 4 days.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.