Riddle: What is highly addictive that offers immediate benefits and is socially acceptable?

One company has taken advantage of this powerful combination to create one of the most valuable brands in history.

It is remarkable that this company was able to convince customers to sit for hours while buying their product.

Starbucks (SBUX) is the world's largest coffee chain. They are ranked top 50 most valuable global brand by Forbes.

Coffee drinkers are unlikely to change their habits any time soon. They will be especially resistant to changing brands after discovering a taste they like.

Starbucks is hands down a great business with a "sticky" customer base. This a company to hold long term and is the type of business Warren Buffett would hold on to forever. However, today's market presents an amazing opportunity to sell puts and collect cash.

Reminder when you sell a put, you receive a cash premium upfront to your brokerage account agreeing to buy a stock between now and the options expiration date, and done right we agree to purchase stocks in the future at a discount to today's price.

Ideally we will never buy shares of stock and instead use the freed up capital from expired put options to sell again for additional cash. However, since there is a chance you will actually own shares of stock it is important to only sell options on companies you are willing to own.

Here are some reasons why Starbucks is a fantastic company and one we should be willing to own:

The average price per item is more than $4, generating $22.7 billion in sales over the last year, $3.3 billion in profits and a 14.5% profit margin.

North American sales are growing around 3% due to saturation but they are growing rapidly in China. Last year, Starbucks grew its sales in China by 30%.

McKinsey projects that China's middle class will grow from 300 million people today to 600 million in 2022. This middle class growth will lead to more coffee per person per year and some of that business will flow to Starbucks.

Starbucks does business right by treating people well. This good image strategy works in the United States and Worldwide. It helps Chinese coffee farmers to grow better coffee with the better coffee Starbucks is willing to pay premium prices. They also offer employees stock incentives, health insurance, and housing allowances.

See below Starbucks stock has had to digest recent gains by moving in a sideways pattern.

This sideways action will not last forever and Starbucks will likely break out to the upside. The current price action does provide our put selling opportunity as we just need the stock not to fall to much to be profitable.

To collect Cold Hard Cash now, I suggest you sell the SBUX June 15, $57.50 puts for $1.24 or better. This is good for a 13.4% annualized return by agreeing to buy shares at a 3.2% discount to yesterday's closing price of $59.43.

For protection I suggest closing the position if SBUX falls below $51 per share.

The best thing we can hope for is for Starbucks shares to trade sideways so that we can continue to sell put options in the future and collect more cash.

If you are assigned shares of SBUX and the price has not fallen below $51 per share, then you will still have the opportunity to generate cash flow by selling call options. We will visit this option if it comes to pass.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.