Opportunity Calls, Grab It!

For the past month, Starbuck's share prices has been hoovering around in the low $90s.  I am bullish on Starbucks and wanted to get in on the action with an option CALL rather than my usual selling PUT for credits.  

Option CALLS are extremely volatile compared to option PUTS.  But if the stock rises to its occasion and you called it right, you can reap endless of profits.

I had some USD cash in my IB account, so I decided to make a calculated "bet" on $SBUX.  

PC‏@PC_Trades

BOUGHT 1 SBUX May15'15 92.5 CALL @ 3.3

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1:01 PM - 10 Mar 2015

The cost of my option CALL is $3.30 per contract.  Each contract has 100 shares, so I paid out $330.  The very next day, $SBUX went down and of course, the value of my call option dropped to $2.89 per contract.  Gulp, I was already down by $0.41 per contract => $41.00!!

Today, $SBUX rose to $93.38 per share.  Good news for my CALL, it also rose by $0.96!  So now, I'm up by $0.55 per contract => $55.00.  $55/$330 = 17% gain in two days.  Not bad eh?  But I'm greedy, I want more!  So I'm still holding... 

Patience is key in the world of options.  I have 64 days to ride this out.  

UPDATE:  My GTC order to close out my position was executed on March 18th, 2015.  I made $200 less commissions in 8 days.  I could have made more money, but I am happy to walk away with a profit.  Go $SBUX!