What the Options Market Tells Us About Starbucks

Investors with a lot of money to spend have taken a bullish stance on Starbucks 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 these are institutions or just wealthy individuals, we don't know. But when something this big happens with SBUX, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 34 uncommon options trades for Starbucks.

This isn't normal.

The overall sentiment of these big-money traders is split between 47% bullish and 47%, bearish.

Out of all of the special options we uncovered, 18 are puts, for a total amount of $824,585, and 16 are calls, for a total amount of $691,813.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $55.0 and $125.0 for Starbucks, spanning the last three months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Starbucks stands at 5527.05, with a total volume reaching 5,117.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Starbucks, situated within the strike price corridor from $55.0 to $125.0, throughout the last 30 days.

Starbucks Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

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.

After a thorough review of the options trading surrounding Starbucks, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Starbucks

• With a trading volume of 7,656,460, the price of SBUX is down by -0.39%, reaching $76.83.
• Current RSI values indicate that the stock is may be oversold.
• Next earnings report is scheduled for 28 days from now.

What The Experts Say On Starbucks

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $92.66666666666667.

• An analyst from Wedbush downgraded its action to Neutral with a price target of $81.
• Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Starbucks, targeting a price of $112.
• Reflecting concerns, an analyst from TD Cowen lowers its rating to Hold with a new price target of $85.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Starbucks options trades with real-time alerts from Benzinga Pro.