Starbucks Offering Possible 20.48% Return Over the Next 36 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 20.48% return on risk over the next 36 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 $0.85 would be kept by the premium seller. The risk of $4.15 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 31.02 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

Target Compounds Its Hacking Debacle Problems
Sun, 19 Jan 2014 15:06:16 GMT
Motley Fool – Retailer's response causes widespread worry that hackers had returned to strike again

Starbucks Security Breach: The Media Misled You (Update 1)
Sat, 18 Jan 2014 23:12:00 GMT
TheStreet – The tech media is sensationalizing a security vulnerability that's very unlikely to come to pass.

Starbucks and Dunkin' Brands: Should You Buy These Expansion Machines?
Sat, 18 Jan 2014 13:32:27 GMT
Motley Fool – Starbucks and Dunkin' Brands are expanding rapidly worldwide, and this will propel profits to all-time highs. Let's see if we should be buying the stocks right now.

U.S. stocks may be vulnerable in earnings blitz
Sat, 18 Jan 2014 00:57:59 GMT

Look out, earnings are the wild card for stocks
Fri, 17 Jan 2014 23:17:14 GMT
CNBC – Stocks could feel a few more jolts in the coming week, as earnings season trumps just about everything else.

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