How to generate some return in beaten-down Starbucks using options following its earnings rout

Starbucks shareholders licking their wounds this week could use a so-called call spread options trade to try to salvage some return in the wake of the big drop in the shares. Let’s review. Starbucks (SBUX) on Wednesday traded nearly seven times the 20-day average equity volume and 10 times the average daily options volume as the shares fell nearly 16%. The coffee maker reported earnings for the quarter that were far short of estimates . It was the fourth-worst trading day for Starbucks since the company’s IPO in 1992. If one is wondering what could have hit the company’s operating…