Shares are trading at their highest level since August
Starbucks Corp (NASDAQ:SBUX) announced better-than-expected fiscal fourth-quarter results, as consumers struggling with high inflation sought “affordable luxuries” in its coffee offerings. The company’s Pumpkin Spice Latte that returned in late August also contributed to strong demand, prompting it to raise its 2024 forecast.
The shares are up 10.6% to trade at $101.04 at last check — their highest level since August — and pacing for their best single-day percentage gain since March 2020. The security is also today eyeing its first close above the 80-day moving average since May. SBUX now sports 19.1% year-over-year lead, and could turn positive for 2023, should these gains hold.
Drilling down to today’s options activity, 17,000 calls and 14,000 puts have crossed the tape, or nine times the volume that’s typically seen at this point. The most popular contract is the November 110 call, but positions are now being opened at the weekly 11/3 110-strike put.
The equity’s Schaeffer’s put/call open interest ratio (SOIR) of 1.23 ranks higher than all readings from the last year. This means short-term options traders lean bearish. Echoing this, SBUX’s 50-day put/call volume ratio of 1.41 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 96% of annual readings.