Starbucks (SBUX) Offering Possible 8.93% Return Over the Next 31 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $77.50 short call and a strike $82.50 long call offers a potential 8.93% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $77.50 by expiration. The full premium credit of $0.41 would be kept by the premium seller. The risk of $4.59 would be incurred if the stock rose above the $82.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Starbucks is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Starbucks is bearish.

The RSI indicator is at 28.21 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Starbucks

Starbucks Tests a Slightly Smaller Frappuccino
Wed, 17 Sep 2014 17:04:26 GMT

Food Babe’s Starbucks Attacks Draw ‘Quackmail’ Backlash
Wed, 17 Sep 2014 14:30:34 GMT

Germany's Schaeuble – could consider tax breaks for R&D firms
Wed, 17 Sep 2014 14:19:53 GMT

Wake Up and Smell the Pricetag: Starbucks Sells $18 Cup of Coffee
Wed, 17 Sep 2014 09:02:48 GMT

Starbucks tests Frappuccino Mini
Wed, 17 Sep 2014 05:39:50 GMT

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