Starbucks (SBUX) Offering Possible 9.89% Return Over the Next 8 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $81.00 short call and a strike $86.00 long call offers a potential 9.89% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $81.00 by expiration. The full premium credit of $0.45 would be kept by the premium seller. The risk of $4.55 would be incurred if the stock rose above the $86.00 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 49.11 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

Food trends cater to youth in 2015
Sat, 10 Jan 2015 11:04:01 GMT

Starbucks moves Tazo tea out of its shops
Fri, 09 Jan 2015 23:21:02 GMT
Reuters – Starbucks Corp this week began selling its Tazo tea products exclusively in non-Starbucks retailers, a company spokeswoman said on Friday. The world's biggest coffee chain on Tuesday replaced Tazo tea …

Stock Pops & Drops: TCS, YELP, ABBV & SBUX
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Schultz: Starbucks COO not leaving for health concerns, rumors are ‘irresponsible'
Fri, 09 Jan 2015 21:10:11 GMT

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