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On Friday’s CNBC’s Options Action, the crew analyzed the performance of Starbucks stock. Starbucks has pulled back over 10% over the last month after breaking out above its $60 resistance level. Starbucks broke out from a wedge formation in April of 2016 but has retraced back to the breakout level. After a 50% retracement from the initial breakout, it provides an entry for a continuation higher. Expecting a bounce higher off the $60 support area, Michael Khouw suggested buying an Sept 60/65 Call Spread for a $1.20 Debit.

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