Starbucks (SBUX) Offering Possible 16.28% Return Over the Next 23 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $80.00 short call and a strike $85.00 long call offers a potential 16.28% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $80.00 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock rose above the $85.00 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 45.45 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

Beyond Meat, Boeing, Apple – 5 Things You Must Know Tuesday
Tue, 23 Jun 2020 09:42:00 +0000
President Trump says U.S.-China trade pact 'fully intact'; Boeing asks Spirit Aerosystems again to slash 737 MAX output; Starbucks chooses Beyond Meat rival for U.S. breakfast sandwich.

How London became a city of flat-white drinkers
Sat, 20 Jun 2020 04:06:36 +0000
One of the simplest pleasures of pre-lockdown London, and surely one of the most missed, was the ubiquity of a good cup of coffee. The number of independent coffee shops in the city has increased tenfold over the past decade — from 50 in 2010 to more than 500 in the city now, according to Jeffrey Young, head of the market research group Allegra Strategies. The coffee in Parliament isn’t too bad and there are several churches in central London where it is exceptional.

The Peet’s Coffee IPO Shows That Coffee Is Still Hot
Fri, 19 Jun 2020 14:58:00 +0000
If you're looking to buy shares in JDE Peet's, the newest coffee company to go public, you might find it to be a difficult task. That's because, despite the Peet's Coffee IPO raising $2.5 billion, it trades on Euronext Amsterdam, and doesn't appear to be available over the counter in the U.S.Source: Ken Wolter / Shutterstock.com InvestorPlace – Stock Market News, Stock Advice & Trading TipsNo matter. It's still an IPO worth covering. There are several reasons why, including that the Peet's Coffee IPO raised a ton of money. Despite the difficulties buying its stock, the IPO is the second-largest in 2020, behind only the Beijing-Shanghai High-Speed Railway, which raised $4.4 billion in January and trades on the Shanghai Stock Exchange. It's interesting that a company that owns such an iconic American brand as Peet's Coffee would choose to list in Europe and not the U.S. It must have been the right call — it only took JDE Peet's 10 days to bring its shares to the market. "We are thrilled to price this offer on Euronext Amsterdam during this extraordinary time," CEO Casey Keller said in a statement. "Seeing the investor interest in JDE Peet's reinforces the belief in our strategy and solidifies our role as a global leader in coffee and tea." It's Not Just Peet'sAlthough Peet's is a name most Americans would recognize, especially those on the West coast, the company has more than 50 different coffee and tea brands, including Jacobs, Douwe Egberts and L'OR.Getting JDE Peet's to where it is today took a lot of money and leg work by the Reimann family. Their investment firm, JAB Holding Company, has invested more than $50 billion over the past six years building JDE Peet's into Starbucks' (NASDAQ:SBUX) largest competitor. * 10 Robotics Stocks on the Technological Cutting Edge The history of JAB and the Reimann family goes back to 1823 when a German chemical company by the name of Benckiser was incorporated. In 1999, Benckiser merged with United Kingdom-based Reckitt & Colman, to form Reckitt Benckiser (OTCMKTS:RBGLY). In 2012, JAB Holding started selling down its stake in the consumer goods company. Then in 2019, it sold off the last of its shares. JAB also owns or controls Panera Bread, Pret a Manger, Einstein Bros. Bagels, Keurig Dr. Pepper (NYSE:KDP), Coty (NYSE:COTY), and the list goes on. It Makes a Bunch of MoneyAccording to its prospectus, JDE Peet's had 6.95 billion euros in revenue in 2019, up from 6.53 billion euros only two years earlier. Farther down the income statement, its operating profit grew from 707 million euros in 2017 to 1.04 billion euros in 2019. In the quarter ended March 31, JDE Peet's revenues increased 3.1% from 1.63 billion euros in Q1 2019 to 1.68 billion euros in Q1 2020. In terms of operating profits, they grew by 27.6% to 254 million euros. That's a lot of coffee. Peet's Is Moving UpscaleSVM Asset Management CIO Colin McLean, one of the investment managers who bought shares in the company's IPO, described JDE Peet's as a "stable business making a steady move to premium, higher value-added coffee markets."Of course, we know another company that participates in the premium coffee market. None other than Starbucks. Interestingly enough, the original owners of Starbucks sold out to Howard Schultz and his partners in 1986, so they could focus their energy on Peet's.Post-IPO, JAB Holding will own through its subsidiary, Acorn Holdings, 62% of JDE Peet's. Mondelez International (NASDAQ:MDLZ) will own 23%. They have deep pockets to go up against Starbucks.We'll see if they do. The coffee market's getting more crowded by the day. The Bottom Line on the Peet's Coffee IPOMy favorite coffee stock remains Starbucks. That being said, if JAB Holding were ever to list its stock, I would be all over that. I can't resist good capital allocators.JDE Peet's intends to pay out between 50% and 60% of its net income from the preceding year for dividends. As a result of its free cash flow growth from 700 million euros in 2017 to 1.2 billion in 2019, it should have plenty to meet its objective for rewarding shareholders. Since listing at 31.50 euros a share, it's up almost 18% in just three weeks. It will be interesting where it ends up at the end of the year. Year to date, Starbucks' total return is a loss of 12.8%. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post The Peeta€™s Coffee IPO Shows That Coffee Is Still Hot appeared first on InvestorPlace.

A Taco Bell employee was fired for wearing a Black Lives Matter mask — now some people are boycotting
Thu, 18 Jun 2020 21:36:00 +0000
Taco Bell is the latest franchise under fire. Denzel Skinner, 26, of Youngstown, Ohio has worked at Taco Bell for eight years, and said that the company did not include anything in its face covering policy that dictated what can and cannot be printed on a mask. “All because I got a Black Lives Matter mask on; I get fired,” Skinner said while livestreaming the account on Facebook Live (FB) on June 8.

Why Starbucks Won’t See a Repeat of the Great Recession
Thu, 18 Jun 2020 14:53:00 +0000
The stock has been hit hard this year, in a way that might have investors who weathered the Great Recession feeling some déjà vu.

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