Starbucks stock looks like a great option for call traders
Subscribers to Schaeffer's Weekend Trader options recommendation service received this SBUX commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
Shares of Starbucks Corp (NASDAQ:SBUX) have pulled back from their 52-week high to key support at their 50-day moving average and November peak. This retracement follows a gap higher after the company's Jan. 28 earnings report, with Friday’s low holding just above the initial post-earnings reaction level. This strong technical setup suggests a potential rebound, making now an attractive time to consider SBUX calls.
Options positioning signals a shift in sentiment. The stock recently pulled back from an area of heavy call open interest (OI) in options expiring through March 21 but is now trading in an area of put support. Notably, six of the eight most active options on Friday were puts, highlighting increased trader interest as shares tested this key level.
Despite its strong earnings reaction and outperformance versus the S&P 500 Index (SPX) in 2025, analysts remain cautious, with 15 “hold” and 5 “sell” ratings -- a relatively modest endorsement given the stock’s recent strength. Meanwhile, short interest is at a record high, with more than three days' worth of volume needed to cover, setting up the potential for a short squeeze if momentum returns.
Our recommended call has a leverage ratio of 6.62, and will double on a 14.84% pop in the underlying shares.