2/06/2022 Plan:
This week we look at Starbucks (Ticker: SBUX)
2/06/2022 Plan (continued):
- SBUX – Sell Mar 4 90 put for 1.20 OR
- SBUX – Sell Feb 25 90 put for 0.91 OR
- SBUX – Sell FEb 25 90/85 put spread for 0.51
- Prices are as of market close 2/4/2022, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
2/06/2022 Commentary:
SBUX has been beaten up a bit. I like adding shares at the 90 level of the popular coffee chain. A couple put sale options provided – can be a bit flexible on the week and the premium is good in both for the hold time. For those looking for a trade (smaller accounts or those that don’t want to take shares), look at the 90/85 in either week with a minimum premium of 0.45.
For another put sale idea, take a look at AMD March 4th. The 100 put can be sold for almost $1. A pretty good return to take possession of AMD at almost $24 below current levels!
Feel free to Reach out with questions on this or anything else!
2/7/2022 Entry:
Sold Mar 4 90/85 put spreads in SBUX for 0.54. Sold AMD Mar 11 100 put for 1.12 (larger accounts) – spread for trade.
2/13/2022 Update:
We are down some on the SBUX put spreads. We still have a few weeks on the trade and I’m holding tight for now.
AMD got beat up pretty badly with its biggest one day drop since March of 2020 our short puts also were beat up. I’m not planning to close at this point as we still have another $13 before we hit our short strike and I’m willing to hold AMD if assigned.
2/21/2022 Update:
We have a couple more weeks on the SBUX put spreads and while they are still down a bit, we have over $3 before our short strike and I plan to keep holding.
We remain down on our short put in AMD, but with $12.5 of space between the current stock price and our short strike price, I plan to hold. I’d be happy to pick up shares at $100 and still believe it is unlikely (but possible) to be assigned.
2/27/2022 Update:
The SBUX put spreads expire this week. They are up a little currently. With the wild moves in the market, strong consideration should be made to simply close these out and book the small win. A higher volatility play is to simply wait until later in the week to try and capture more – at the risk of a significant loss. If you have a smaller account size, I’d just close them, larger accounts that can handle larger swings can opt to hold.
The AMD put is now profitable ($72), with another couple weeks. I intend to hold to expiration to capture all of the premium (or take shares at 100).
3/5/2022 Update/Partial Close:
Well, the SBUX put spreads were looking great Wednesday and Thursday and then there was a good size sell off on Friday. Some took them off Wed/Thurs others waited. If you waited until the Very end of the day, they expired worthless. If you didn’t, no problem, you still closed with a nice profit throughout the day Friday – just made you ‘sweat’ a bit.
The AMD puts are now down just a bit with the selloff in AMD over the last week. AMD closed a bit above $108/share and I still intend to hold these until Friday which is when they expire. Feel free to take them off earlier in the week for a profit or even consider rolling out if AMD dips below $100.
3/13/2022 Close:
The AMD puts expired worthless, bringing us a total of $112 in profit. I *still* like getting long shares in AMD (potential spoiler of future trade…)
