Starbucks Offering Possible 7.53% Return Over the Next 11 Calendar Days

Starbucks's most recent trend suggests a bullish bias. One trading opportunity on Starbucks is a Bull Put Spread using a strike $80.00 short put and a strike $75.00 long put offers a potential 7.53% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $80.00 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock dropped below the $75.00 long put 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 below 20 which suggests that the stock is in oversold territory.

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

Better Brewing Through Technology
Wed, 06 Nov 2013 01:02:01 GMT
The New Yorker – In 2007, seven years after Howard Schultz stepped down as the C.E.O. of Starbucks, he wrote a memo to then-C.E.O. Jim Donald, with the subject line “ The Commoditzation of the Starbucks Experience .” It …

Dunkin' Brands, Panera Bread, and Starbucks: Three Winning Business Models
Wed, 06 Nov 2013 01:02:00 GMT
Forbes – Disclosure: I am long Dunkin Brands and Panera Bread stocks (Image credit: Getty Images via @daylife) Dunkin' Brands, Krispy Kreme (NYSE:KKD), McDonald’s (NYSE:MCD), Panera Bread and Starbucks are in a similar line of business. But there is a little thing that makes the difference across the five franchise chains: the structure of […]

Starbucks to Present at Morgan Stanley Global Consumer Conference
Tue, 05 Nov 2013 23:52:00 GMT
Business Wire – Starbucks Corporation today announced the company will present at the Morgan Stanley Global Consumer Conference in New York at 8:00 a.m. ET on Tuesday, November 19, 2

Did Starbucks Just Have Its Best Year of All Time?
Tue, 05 Nov 2013 22:52:08 GMT
Motley Fool – Starbucks had an amazing fiscal 2013. Can it repeat in 2014?

Former Barista Tells The Four Worst Things About Working At Starbucks
Tue, 05 Nov 2013 21:52:00 GMT
Business Insider – A former Starbucks barista has revealed the…

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