After market close, three companies will release their earnings reports. Starbucks is expected to report a Q3 2025 earnings per share (EPS) of $0.96 with revenue of $9.29 billion. Currently, Starbucks shares are trading at $92.61.
Visa is anticipated to announce Q3 2025 results with an EPS of $2.41 and revenue reaching $8.65 billion. At present, Visa shares are priced at $351.03.
Booking Holdings is set to reveal its Q2 2025 earnings, with a predicted EPS of $39.79 and revenue of $5.97 billion. Booking Holdings’ shares are trading at $5609.
With earnings reports due after the close on July 29, 2025, we are preparing for a significant increase in short-term volatility. Implied volatility is elevated across these names, presenting opportunities for traders who anticipate the post-announcement premium crush. Our focus is on positioning for the immediate price move and the subsequent volatility environment in the coming weeks.
For Starbucks, we are cautious despite the solid expectations. Recent data from consumer analytics firms has shown a slight 1.5% dip in U.S. foot traffic for June, creating concern around their guidance for the next quarter. We are considering straddles or strangles to play a larger-than-expected move in either direction, or buying put spreads for downside protection.
Once the SBUX earnings are out, we will look to sell premium. If the stock drops to a level we find attractive, we will sell cash-secured puts for August expirations to either generate income or acquire shares at a lower cost basis. If the stock rallies, we’ll consider selling call spreads above the new price to capitalize on the declining volatility.
Visa’s performance is a direct reflection of consumer health. The Bureau of Economic Analysis recently reported that personal spending rose a modest 0.3% last month, which should provide a tailwind for Visa’s payment volumes. We believe the risk is balanced, making an iron condor an attractive strategy to bet on the stock staying within a calculated range.
Regarding Booking Holdings, the key will be their commentary on summer travel trends. Recent TSA checkpoint data shows passenger throughput is running 7% ahead of the same period last year, suggesting a robust travel season. Given the high price of the stock, we are exclusively looking at debit and credit spreads to define our risk on any directional bets.
The $5,609 share price of Booking makes trading outright options too capital-intensive for most. Therefore, we are using call spreads to play for an upside surprise, anticipating strong results from the peak spring and early summer travel season. Should the stock sell off, we will evaluate selling bullish put spreads in the weeks ahead, betting that travel demand remains strong.
