SBUX - Just bought 100 contracts June 30 Calls at $0.50

atticus · May 14, 2007

Quote from optioncoach:

This was a great trade.... for the seller of those calls

EDIT: They have not budged on the down move so back the truck up and load it up baby with every $8.00 Mocha Frappa Crappa Caffa-chino...

Every time I hear the "saturation" argument I think of the Simpsons episode where Homer has a dream that every shop in the mall is a SBUX. There is a point at which stores cannibalize and margins recede.

The increase in vols on this profit-taking aided the atm strikes.

Tums · May 14, 2007

there is a remedy for catchers of falling knives...

http://www.gamblersanonymous.org/index.html

demoship · May 14, 2007

I caught a falling knife a few months ago, and my hand is still bleeding.

nazzdack · May 14, 2007

Atleast he bought call options and not scratch-off lottery tickets. Is there a Caribou Coffee across the street from each new Starbucks you see?

opt789 · May 14, 2007

Quote from forex-forex:

SBUX - Just bought 100 contracts June 30 Calls at $0.50. Should be easy money.

I am not sure if the gentleman actually bought these Calls, based on his cavalier attitude, but I hope this was a paper trade. Anyone who is not a serious option trader should first think twice about trading options at all, and second at least post the trade you want to do and ask opinions, you may get some suggestions as to picking a much better strategy to take advantage of your prediction without outright gambling. Right now the June 35 Calls are zero bid, so you are quite literally the only person in the world who thinks the stock can go there in that time frame.

Always_Hedge · May 14, 2007

This must be a joke, SBUX has been in downturn since Nov last year and there's no way it will get to 35. It may get to 32 and stall at best.

Just curious how much did you pay for those "bad boys"?

Good Luck, though!!

Handsome · May 15, 2007

Quote from opt789:

I am not sure if the gentleman actually bought these Calls, based on his cavalier attitude, but I hope this was a paper trade. Anyone who is not a serious option trader should first think twice about trading options at all, and second at least post the trade you want to do and ask opinions, you may get some suggestions as to picking a much better strategy to take advantage of your prediction without outright gambling. Right now the June 35 Calls are zero bid, so you are quite literally the only person in the world who thinks the stock can go there in that time frame.

His calls strike price is $30.00, not $35.00. If SBUX hits $31.00 anytime between now and the 3rd Friday in JUNE he will double his money! And if SBUX does go to $35 by the 3rd Friday in June he will then be a zillionaire

opt789 · May 15, 2007

Quote from Handsome:

His calls strike price is $30.00, not $35.00. If SBUX hits $31.00 anytime between now and the 3rd Friday in JUNE he will double his money! And if SBUX does go to $35 by the 3rd Friday in June he will then be a zillionaire

Actually he would more than double his money if it trades 31 before expiration; little thing called extrinsic value. Where do you live that a $45k profit makes you a "zillionaire"?

Handsome · May 15, 2007

Quote from opt789:

Where do you live

I live in my mansion.

deviltrader · May 15, 2007

Quote from Handsome:

His calls strike price is $30.00, not $35.00. If SBUX hits $31.00 anytime between now and the 3rd Friday in JUNE he will double his money! And if SBUX does go to $35 by the 3rd Friday in June he will then be a zillionaire

he thinks that SBUX will reach $35 by June expiry. Read his other posts.

gooooooooood luck on that.

"A fool and his money.... <fill in blank>"