Starbucks Corporation (NASDAQ: SBUX) is expected to report quarterly earnings after the closing bell Tuesday.
On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said options markets are implying a move of around plus or minus 5% after the release of quarterly earnings, which is more than the 5% average move recorded during the last eight quarters.
“The trader bought 1,000 of the September 90-puts and sold 2,000 of the September 80-puts at 50 cents net debit,” said Khouw.
In February 2023, Wikipedia stated that Starbucks announced it would introduce a line of coffee drinks made with extra virgin olive oil, including lattes, shaken expresso, and cold brews.
This would not be a limited-time offering, but rather “‘one of the biggest launches we’ve had in decades,'” said Brady Brewer, the company’s chief marketing officer. “The goal was to create a new category of beverage.”
Traders expect Starbucks stock to trade lower through the September expiration.
Analysts expect the company to report quarterly earnings at 86 cents per share on revenue of $8.42 billion.
SBUX Price Action: Starbucks shares gained 0.3% to close at $101.57 on Monday, and added 0.2% in the after-hours trading session.
According to Wikipedia, Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world’s largest coffeehouse chain.
“As of November 2021, the company had 33,833 stores in 80 countries, 15,444 of which were located in the United States. Out of Starbucks’ U.S.-based stores, over 8,900 are company-operated, while the remainder are licensed,” said Wikipedia.
“The rise of the second wave of coffee culture is generally attributed to Starbucks, which introduced a wider variety of coffee experiences,” Wikipedia added.
“Starbucks serves hot and cold drinks, whole-bean coffee, micro-ground instant coffee, espresso, caffe latte, full and loose-leaf teas, juices, Frappuccino beverages, pastries, and snacks. Some offerings are seasonal or specific to the locality of the store. Depending on the country, most locations provide free Wi-Fi Internet access.”
Produced in association with Benzinga
Edited by Priscilla Jepchumba and Judy J. Rotich
