Starbucks Offering Possible 6.84% Return Over the Next 24 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $75.00 short call and a strike $80.00 long call offers a potential 6.84% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $75.00 by expiration. The full premium credit of $0.32 would be kept by the premium seller. The risk of $4.68 would be incurred if the stock rose above the $80.00 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 55.16 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

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Thu, 27 Feb 2014 03:03:56 GMT

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Starbucks to Present at Bank of America Merrill Lynch Consumer and Retail Conference
Tue, 25 Feb 2014 23:58:30 GMT
noodls – SEATTLE–(BUSINESS WIRE)–Feb. 25, 2014– Starbucks Corporation (NASDAQ:SBUX) today announced the company will present at the Bank of America Merrill Lynch Consumer and Retail Conference in New York at …

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Tue, 25 Feb 2014 23:00:00 GMT

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