Starbucks Corp (NASDAQ:SBUX) stock is inching 1.2% higher to trade at $107.09 this morning, after the coffee chain announced it will be laying off 300 corporate jobs and plans to incur $400 million in charges related to its restructuring plan. Several regional offices will also be closed. A spokesperson said the company is "taking further action" to return to "durable, profitable growth."
SBUX isn't far from yesterday's fresh annual high of $108.88, adding to its now 26% year-to-date gain. The 20-day moving average captured a multi-day pullback in late-April, with shares now contending with the overhead $110 level.
Short-term options traders learn bearish, suggesting an unwinding of pessimism could create additional tailwinds for SBUX. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 1.35 that sits higher than all other annual readings.
Options look like an attractive route when weighing on the stock's next moves, per its Schaeffer's Volatility Index (SVI) of 28% that sits higher than just 19% of all other readings from the past year. In other words, near-term option traders are pricing in relatively low volatility expectations.
What's more, SBUX's Schaeffer's Volatility Scorecard (SVS) comes in at 5 out of 100. This suggests the equity has consistently realized lower volatility than its options have priced in -- a boon to premium sellers.
