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SBUX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Starbucks Corporation (Consumer Cyclical) · $103.67 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
SBUX is trading at $103.67 with RSI at 66 (neutral territory). Options IV is at 32% — 40% below its 30-day average of 54%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
66
IV Today
32.4%
IV vs 30d Avg
-40%
MACD
bullish
ADX
32
MFI
79
The Setup
SBUX Covered Call
LONG STOCK
100 shares @ $103.67
SHORT CALL
$110 Dec '26 · $1.95/sh
Net Cost
$10,172
Max Profit
+$828
Break-even
$101.72
Projected P&L at Target
+$828
(8.1%)
P&L at Expiry
P&L Scenarios
What happens at different SBUX prices by expiry:
| SBUX Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $83 (-20%) | -$1,880 | -$1,878 | -$1,878 | -$1,878 |
| $88 (-15%) | -$1,371 | -$1,362 | -$1,360 | -$1,360 |
| $93 (-10%) | -$881 | -$856 | -$843 | -$842 |
| $98 (-5%) | -$431 | -$379 | -$336 | -$323 |
| $102 (-2%) | -$192 | -$122 | -$50 | -$12 |
| $104 (0%) ← now | -$48 | +$33 | +$125 | +$195 |
| $106 (+2%) | +$83 | +$173 | +$282 | +$402 |
| $109 (+5%) | +$252 | +$351 | +$476 | +$713 |
| $110 (+6%) ← target | +$307 | +$407 | +$535 | +$828 |
| $114 (+10%) | +$466 | +$564 | +$683 | +$828 |
| $119 (+15%) | +$603 | +$685 | +$771 | +$828 |
| $124 (+20%) | +$683 | +$745 | +$799 | +$828 |
Why This Strategy, Why Now
- RSI at 66 — extended, ideal for selling calls
- IV -40% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 32 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
- MFI at 79 — money flow confirms overbought
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.
ADX at 32 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.