On Friday’s Options Action, the crew analyzed the performance of Starbucks (SBUX). SBUX has outperformed the market during the end of last year’s selloff, showing strong relative strength. Coupled with a decade long bullish triangle formation that is near its resistance, expectations are for a continuation higher. Expecting SBUX to break higher, Michael Khouw suggests buying an April 65 Call for a $2.50 Debit. As of Friday’s close, these calls were trading at a $2.52 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: SBUX Options Action Video