Starbucks Offering Possible 8.23% Return Over the Next 8 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 8.23% return on risk over the next 8 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 $0.38 would be kept by the premium seller. The risk of $4.62 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 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

Ask a Fool: Who Will Be the Biggest Holiday Winners?
Sat, 14 Dec 2013 15:32:04 GMT
Motley Fool – The holidays are the biggest time of the year for a lot of companies, but who's poised to win this year while other retailers are falling flat?

3 Successful Entrepreneurs Generating Growth for Shareholders
Sat, 14 Dec 2013 13:01:59 GMT
Motley Fool – Amazon, Starbucks and Under Armour are three innovative growth companies run by successful entrepreneurs, and that´s a big plus for investors

[$$] Gourmet-Coffee Prices Look Ready to Rise
Sat, 14 Dec 2013 06:20:04 GMT
The Wall Street Journal – Some investors view the convergence in prices between high-end and down-market beans as a signal to bet on a rebound in the gourmet-bean market.

Potential Downside To Starbucks' Valuation
Fri, 13 Dec 2013 20:54:18 GMT
Seeking Alpha – It has been a wonderful year for Starbucks Corporation ( SBUX ). Shares of the company have advanced more than 40% since the start of the year, outperforming the broader indices. A series of strong results …

First Starbucks Store Opens in Monaco
Fri, 13 Dec 2013 17:41:14 GMT
noodls – Starbucks celebrated the opening of its first store in Monaco, in partnership with Tar.Ca, on December 4. The store is situated inside the Jardins d'Apolline at 1 Promenade Honoré II in the Monte Carlo …

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