Starbucks Offering Possible 12.36% Return Over the Next 30 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $77.50 short call and a strike $82.50 long call offers a potential 12.36% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $77.50 by expiration. The full premium credit of $0.55 would be kept by the premium seller. The risk of $4.45 would be incurred if the stock rose above the $82.50 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 at 30.67 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Starbucks

Starbucks Raises Forecast as Net Earnings Rise 25%
Fri, 24 Jan 2014 00:21:20 GMT
New York Times – The company said global sales at stores open at least 13 months were up 5 percent in the fourth quarter of 2013, and it increased its 2014 earnings forecast.

Starbucks boosts profit forecast despite slower growth
Fri, 24 Jan 2014 00:14:55 GMT

Starbucks boosts profit forecast despite slower growth
Fri, 24 Jan 2014 00:14:01 GMT
Reuters – Starbucks Corp on Thursday reported that sales at established restaurants in its U.S.-dominated Americas region cooled more than analysts expected in its latest quarter as online shopping kept more consumers at home and reduced their visits to its coffee bars. With fewer shoppers going to all types of stores to buy gifts, Starbucks executives said sales at its cafes open at least 13 months softened, particularly in December Global sales at Starbucks cafes open at least 13 months were up 5 percent, versus analysts' average estimate for a 5.9 percent rise, according to Consensus Metrix. That figure included a 5 percent increase for the Americas region, which contributes 70 percent of Starbucks revenue.

4:11 pm Starbucks beats by $0.02, misses on revs; guides Q2 EPS below consensus; guides Q3 (Jun) EPS below consensus; guides FY14 EPS in-line
Thu, 23 Jan 2014 23:49:23 GMT
Briefing.com – 4:11 pm Starbucks beats by $0.02, misses on revs; guides Q2 EPS below consensus; guides Q3 (Jun) EPS below consensus; guides FY14 EPS in-line

Starbucks' profit jumps but sales growth slows
Thu, 23 Jan 2014 23:36:18 GMT
AP – Starbucks says its quarterly profit rose by 25 percent as it benefited from lower coffee costs and stronger sales around the world. The Seattle-based coffee company says global sales rose 5 percent at …

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