After the Bell - Starbucks

$SBUX

Look how the gap from SBUX 0.00%↑ last earnings report has been filled completely in the time since. Coincidences.

Below the AVWAP from that gap (purple) and declining/flattish 200 day isn’t particularly constructive, but I’m nonetheless holding calls at $97.5, which is roughly the convergence point of those two data points. They were funded with proceeds from the sale of $80 puts, which is a downside area of interest (see chart below).

In the absence of a major downside surprise, I’ll likely be looking for spread trades around the $90 level for the period after tomorrow until the next earnings report. If SBUX 0.00%↑ gets through tomorrow, the $90ish low from last October will be comfortable in the rear view mirror.