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.
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?
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.
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!!
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"?
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>"