Starbucks Offering Possible 12.87% Return Over the Next 18 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $72.50 short call and a strike $77.50 long call offers a potential 12.87% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $72.50 by expiration. The full premium credit of $0.57 would be kept by the premium seller. The risk of $4.43 would be incurred if the stock rose above the $77.50 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 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

Starbucks Opens New Store Inspired by the Live Music Capital of the World
Wed, 05 Feb 2014 00:33:33 GMT
noodls – For nearly 40 years, an eclectic range of artists have captivated viewers across the country from Austin City Limits Live, the longest running music television program, filmed under the bright lights of …

Corporate profit growth has best showing in a year
Tue, 04 Feb 2014 23:17:56 GMT
USA TODAY – 74% of the S&P 500 companies reporting have beat forecasts, best showing since 4Q of 2011.

11 Facts About Starbucks That Will Blow Your Mind
Tue, 04 Feb 2014 15:33:00 GMT
Business Insider – Starbucks has become a global powerhouse, and…

Cramer's Six in 60: DIS, AAPL & more
Tue, 04 Feb 2014 14:54:00 GMT
CNBC – Cramer shares six stocks to watch, and reveals them in under 60 seconds including Disney and an upgrade for Pfizer. Cramer also comments on “pot” stocks.

McDonald's Coffee vs. Starbucks — Can McCafe Make a Dent?
Tue, 04 Feb 2014 14:53:57 GMT
Motley Fool – McDonald's has been in the premium coffee business for five years and has yet to dent Starbucks' business. But that's not stopping the chain from continuing to push its McCafe brand.

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