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Call Options on SBUX on 2/9/2015

Bullish Flag on SBUXStarbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide.

The company operates in four segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development.

The company’s stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single serve products, and juices and bottled water. Its stores also provide fresh food offerings; ready-to-drink beverages; and various food products, such as pastries, and breakfast sandwiches and lunch items, as well as beverage-making equipment and accessories.

In addition, it licenses the rights to produce and distribute Starbucks branded products to The North American Coffee Partnership with the Pepsi-Cola Company, as well as licenses its trademarks through licensed stores, and grocery and national foodservice accounts.

The company offers its products under the Starbucks, Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, Ethos, Starbucks VIA, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Discoveries Iced Café Favorites brand names. As of October 30, 2014, it operated 21,366 stores in 65 countries.

Shares have formed a bullish "flag" following its recent earnings and higher share prices are expected for this stock. 

 

52-Week Trading Range: $67.93 to $89.77

Last Trade: $89.00

Trade

  • Buy 1 March $87.50 Call at $3.10
  • For a net debit of $3.10

Profit/Loss Analysis

  • Breakeven at $90.60
  • Maximum profit is unbounded
  • Maximum loss is ($310.00) at strike of $87.00

Closing Summary

  • Sold 1 March $87.50 Call at $6.75

Position closed on 2/25/2015 at price of $6.75 with a 117.74% gain in 16 days.

Updates

2/25/2015 10:47:58 AM

We are taking profits on SBUX Call options.

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