Actionable news
All posts from Actionable news
Actionable news in SBUX: Starbucks Corporation,

Pete Najarian Sees Unusual Options Activity In Starbucks

On CNBC's Fast Money Halftime Report, Pete Najarian said he noticed a big call options activity in Starbucks CorporationSBUX 0.1% on Tuesday.

He explained that traders were selling puts in Starbucks last week as they were expecting a bounce after a move lower on the news of a departure of the CEO.

In the first half of the session on Tuesday, they became even more aggressive as they bought 9,000 contracts of the December, weekly 57.5 calls at the average price of $0.60. The trade breaks even at $58.10 or 1.25 percent higher.

Najarian decided to follow the trade and he is planning to hold the position for a couple of days.

© 2016 Benzinga does not provide investment advice. All rights reserved.