Starbucks (SBUX) showed up on the unusual options volume page last week for the first time in quite a while, says Jay Soloff of Investors Alley.
The coffee giant saw its shares drop 3.7% in one day, with 2.7x the number of options traded compared to the average. However, 61% of the options traded were calls, which tends to be a bullish signal. It’s possible that the IPO of rival coffee chain Dutch Bros (BROS) created a “buy BROS/sell SBUX” situation that resulted in the selloff. Some option traders may be betting on a quick rebound in SBUX if that’s the case.
Learn more about Jay Soloff at Investors Alley.
