Starbucks Corp. - SBUX - close: 56.00 change: +0.40

Stop Loss: 54.75
Target(s): 59.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SBUX reported its quarterly earnings last week and popped to new multi-month highs on the result. Since then shares have corrected just low enough to fill the gap. Now SBUX is beginning to rebound. We want to be ready to catch the next move higher if there is any follow through on this bounce.

I am suggesting a trigger to buy calls at $56.50. If triggered our target is $59.85. More aggressive traders could aim for the all-time highs in the $62 area set last year. FYI: The Point & Figure chart for SBUX is bullish with a long-term $67 target.

Trigger @ 56.50

- Suggested Positions -

buy the Mar $55 call (SBUX1316c55) current ask $2.14

Annotated Chart:

Entry on January -- at $---.--
Average Daily Volume = 6.8 million
Listed on January 30, 2012