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SBUX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Starbucks Corporation (Consumer Cyclical) · $106.01 ·
Analysis generated Jul 10, 2026 ·
Data as of market close Jul 10
Quick Take
SBUX is trading at $106.01 with RSI at 63 (neutral territory). Options IV is at 27% — 48% below its 30-day average of 52%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
63
IV Today
27.0%
IV vs 30d Avg
-48%
MACD
bullish
ADX
15
MFI
66
The Setup
SBUX Covered Call
LONG STOCK
100 shares @ $106.01
SHORT CALL
$115 Sep '26 · $2.89/sh
Net Cost
$10,312
Max Profit
+$1,188
Break-even
$103.12
Projected P&L at Target
+$1,188
(11.5%)
P&L at Expiry
P&L Scenarios
What happens at different SBUX prices by expiry:
| SBUX Price | Today | Aug 3 | Aug 26 | Sep 18 (exp) |
|---|---|---|---|---|
| $85 (-20%) | -$1,841 | -$1,833 | -$1,831 | -$1,831 |
| $90 (-15%) | -$1,331 | -$1,310 | -$1,301 | -$1,301 |
| $95 (-10%) | -$846 | -$802 | -$775 | -$771 |
| $101 (-5%) | -$402 | -$328 | -$263 | -$241 |
| $104 (-2%) | -$162 | -$69 | +$27 | +$77 |
| $106 (0%) ← now | -$15 | +$91 | +$207 | +$289 |
| $108 (+2%) | +$122 | +$238 | +$373 | +$501 |
| $111 (+5%) | +$306 | +$434 | +$593 | +$819 |
| $115 (+8%) ← target | +$488 | +$623 | +$795 | +$1,188 |
| $117 (+10%) | +$557 | +$693 | +$865 | +$1,188 |
| $122 (+15%) | +$743 | +$872 | +$1,027 | +$1,188 |
| $127 (+20%) | +$873 | +$986 | +$1,106 | +$1,188 |
Why This Strategy, Why Now
- RSI at 63 — extended, ideal for selling calls
- IV -48% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 15 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
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.
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.