Close the Starbucks Puts for a 37% Gain in 2 weeks

February 04, 2014 - 12:45 pm

On January 21st we went long the SBUX March $70 Puts at $1.42.  We are closing them today at $1.95 for a gain of 37.3%.  These options were up over 70% from our purchase price yesterday, however SBUX has traded up close to 2.5% today.  If it has another big day tomorrow we could lose the rest of our profit on this trade, so we are going to close it today and protect our gains.