Someone with a lot of money to spend has taken a bearish stance on Starbucks (NASDAQ:SBUX).
And retail traders should know.
We noticed this today when the big position 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.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 10 uncommon options trades for Starbucks.
This isn't normal.
The overall sentiment of these big-money traders is split between 30% bullish and 70%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $205,502, and 4 are calls, for a total amount of $150,972.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $75.0 to $95.0 for Starbucks over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Starbucks options trades today is 1935.25 with a total volume of 2,087.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Starbucks's big money trades within a strike price range of $75.0 to $95.0 over the last 30 days.
Starbucks Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| SBUX | CALL | TRADE | BEARISH | 04/29/22 | $84.00 | $57.8K | 3 | 307 |
| SBUX | PUT | TRADE | NEUTRAL | 12/16/22 | $95.00 | $52.2K | 63 | 39 |
| SBUX | PUT | SWEEP | BEARISH | 09/16/22 | $90.00 | $39.9K | 350 | 142 |
| SBUX | CALL | TRADE | BULLISH | 09/16/22 | $75.00 | $35.4K | 24 | 50 |
| SBUX | PUT | SWEEP | BULLISH | 04/14/22 | $85.00 | $30.1K | 9.4K | 324 |
Where Is Starbucks Standing Right Now?
- With a volume of 7,942,785, the price of SBUX is down -4.1% at $84.48.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 21 days.
What The Experts Say On Starbucks:
- Wedbush has decided to maintain their Outperform rating on Starbucks, which currently sits at a price target of $105.
- MKM Partners has decided to maintain their Buy rating on Starbucks, which currently sits at a price target of $117.
- Wedbush downgraded its action to Neutral with a price target of $91
- JP Morgan upgraded its action to Overweight with a price target of $101
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.
