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SBUX Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
Starbucks Corporation (Consumer Cyclical) · $96.60 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
SBUX is trading at $96.60 with RSI at 56 (neutral territory). Options IV is at 34% — 35% below its 30-day average of 53%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
56
IV Today
34.0%
IV vs 30d Avg
-35%
MACD
bullish
ADX
26
MFI
50
The Setup
SBUX Covered Call
LONG STOCK
100 shares @ $96.6
SHORT CALL
$105 Jun '26 · $2.26/sh
Net Cost
$9,434
Max Profit
+$1,066
Break-even
$94.34
Projected P&L at Target
+$1,066
(11.3%)
P&L at Expiry
P&L Scenarios
What happens at different SBUX prices by expiry:
| SBUX Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $77 (-20%) | -$1,714 | -$1,708 | -$1,706 | -$1,706 |
| $82 (-15%) | -$1,248 | -$1,230 | -$1,223 | -$1,223 |
| $87 (-10%) | -$804 | -$767 | -$743 | -$740 |
| $92 (-5%) | -$396 | -$332 | -$276 | -$257 |
| $95 (-2%) | -$175 | -$94 | -$11 | +$33 |
| $97 (0%) ← now | -$40 | +$53 | +$153 | +$226 |
| $99 (+2%) | +$86 | +$188 | +$306 | +$419 |
| $101 (+5%) | +$256 | +$369 | +$508 | +$709 |
| $105 (+9%) ← target | +$434 | +$554 | +$705 | +$1,066 |
| $106 (+10%) | +$488 | +$609 | +$761 | +$1,066 |
| $111 (+15%) | +$660 | +$775 | +$912 | +$1,066 |
| $116 (+20%) | +$780 | +$881 | +$988 | +$1,066 |
Why This Strategy, Why Now
- RSI at 56 — neutral-bullish
- IV -35% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 26 — moderate trend
- 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.
ADX at 26 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.