Starbucks Earnings Are Brewing: Options Market Implies 5% Move – Starbucks (NASDAQ:SBUX)

Starbucks Corporation SBUX is expected to report quarterly earnings after the closing bell Tuesday. 

On CNBC’s “Options Action,”  Mike Khouw of Optimize Advisors said options markets are implying a move of around plus or minus 5% after the release of quarterly earnings, which is more than the 5% average move recorded during the last eight quarters.

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The trader bought 1,000 of the September 90-puts and sold 2,000 of the September 80-puts at 50 cents net debit, Khouw mentioned.

Traders expect Starbucks stock to trade lower through the September expiration.

Analysts expect the company to report quarterly earnings at 86 cents per share on revenue of $8.42 billion.

SBUX Price Action: Starbucks shares gained 0.3% to close at $101.57 on Monday, and added 0.2% in the after-hours trading session.

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