Starbucks draws call spread at lows

A large call spread tops today’s option activity in Starbucks as it trades near its lowest levels since the beginning of the year.

SBUX is down 3 percent to trade at $45.49 after dipping to $45.38, its lowest price since early January. Shares hit an all-time high of $62 in mid-April but gapped down from above $52 at the end of last week after the company announced earnings.

The option volume in SBUX is already twice its daily average and dominated by a call diagonal spread, which uses strikes in different months. The trade involved 10,000 October 55 calls that went for $0.25 and the same number of September 52.50 calls for $0.28.

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— Option Monster

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