Do These Factors Support a Starbucks Run To All-Time Highs?


Now, investor sentiment is also key to the success of a stock. One way to gain perspective into investor sentiment is through the use of the options market. More specifically, taking a look at the implied volatility and implied volatility skew levels of Starbucks options may help determine if investors are bullish, neutral, or bearish.

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The implied volatility of Starbucks options is at 27.75 percent today and coincides with a 66th percentile over the last 30 trading days and 42nd percentile over the last 90 trading days. What does this mean? It means that investors or traders are buying a good amount of protection as compared to the last 30 and 90 trading days. The implied volatility skew of March and April put options is average, while call option skew is also about average.

Now, what does this mean? As of today, there is an average demand from call buyers or average supply of call sellers while there is average demand by put buyers or average demand by put sellers, all neutral over the next 2 months. So, investors are buying a good amount of protection, and those that are, are neutral over the next 2 months.