I don’t trust this rally and want to lock in profits wherever we can ahead of this month’s Federal Reserve meeting.
Therefore, I am recommending we close our Starbucks (SBUX) put now. While we are giving back more cash than usual to close, we will exceed our annualized rate of return goal of 26%.
Current Stock Price: $78.44
Cash in Hand: $0.52
Action: Buy to close the SBUX Jun Week Two (6/10) 73.50 Put
Current Option Price: $0.28-$0.30
Recommended Limit: Set your initial limit order at $0.29, but adjust as needed to close today
Profit: $0.23, or $23 per contract
Rate of Return: 0.3% in three days, or 38% on an annualized basis