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Why SBUX Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Starbucks Corporation (Consumer Cyclical) · $101.16 ·
Analysis generated Jun 18, 2026 ·
Data as of market close Jun 18
Quick Take
SBUX is trading at $101.16 with RSI at 52 (neutral territory). Options IV is at 30% — 46% below its 30-day average of 56%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
52
IV Today
30.2%
IV vs 30d Avg
-46%
MACD
bullish
ADX
19
MFI
51
The Setup
SBUX Covered Call
LONG STOCK
100 shares @ $101.16
SHORT CALL
$110 Aug '26 · $2.4/sh
Net Cost
$9,876
Max Profit
+$1,124
Break-even
$98.76
Projected P&L at Target
+$1,124
(11.4%)
P&L at Expiry
P&L Scenarios
What happens at different SBUX prices by expiry:
| SBUX Price | Today | Jul 9 | Jul 30 | Aug 21 (exp) |
|---|---|---|---|---|
| $81 (-20%) | -$1,789 | -$1,784 | -$1,783 | -$1,783 |
| $86 (-15%) | -$1,297 | -$1,283 | -$1,277 | -$1,277 |
| $91 (-10%) | -$828 | -$794 | -$774 | -$772 |
| $96 (-5%) | -$395 | -$334 | -$282 | -$266 |
| $99 (-2%) | -$159 | -$80 | -$2 | +$38 |
| $101 (0%) ← now | -$15 | +$76 | +$173 | +$240 |
| $103 (+2%) | +$119 | +$220 | +$336 | +$442 |
| $106 (+5%) | +$300 | +$412 | +$551 | +$746 |
| $110 (+9%) ← target | +$489 | +$610 | +$762 | +$1,124 |
| $111 (+10%) | +$545 | +$666 | +$818 | +$1,124 |
| $116 (+15%) | +$723 | +$838 | +$975 | +$1,124 |
| $121 (+20%) | +$846 | +$946 | +$1,051 | +$1,124 |
Why This Strategy, Why Now
- RSI at 52 — neutral-bullish
- IV -46% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
SBUX has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if SBUX approaches the strike before expiry.