We bought back our Starbucks (SBUX) put last week to avoid the company’s earnings announcement.

Starbucks reported better-than-expected fiscal fourth quarter earnings and revenue, saying sales in the United States and China are bouncing back from the pandemic faster than anticipated. Management’s forecast for the year ahead also exceeded analyst forecasts.

The stock initially traded higher before succumbing to broader market weakness.

I am recommending we sell a SBUX put today to reduce our net debit on the position.

You can enter today’s trade even if you were not in the previous position. Just be aware that we will be tracking and managing it as an ongoing position.

Current Stock Price: $86.61

Net Debit: $12.40

Action: Sell to open the SBUX Nov Week One (11/6) 85 Put for around $1.11

New Net Debit: $11.29