Starbucks Offering Possible 9.65% Return Over the Next 32 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $80.00 short call and a strike $85.00 long call offers a potential 9.65% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $80.00 by expiration. The full premium credit of $0.44 would be kept by the premium seller. The risk of $4.56 would be incurred if the stock rose above the $85.00 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 below 20 which suggests that the stock is in oversold territory.

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LATEST NEWS for Starbucks

Starbucks sees card record
Tue, 17 Dec 2013 23:43:00 GMT
Investor's Business Daily – All Business Briefs

Can this Quick-Service Restaurant Keep Up with Competitors?
Tue, 17 Dec 2013 22:08:09 GMT
Motley Fool – Tim Horton’s growth has left investors hungry for more in light of results from Starbucks, Dunkin’ Brands Group, and Krispy Kreme Doughnuts.

Where Will Starbucks Go Next?
Tue, 17 Dec 2013 22:05:03 GMT
Wall St. Cheat Sheet – Starbucks stock has been exploding to the upside in recent years but is currently pulling back.

5 things you should know about gift cards
Tue, 17 Dec 2013 19:57:00 GMT
MarketWatch – Gift cards are gaining popularity this year, according to retail industry data.

Farewell, Cash: Starbucks Gets Ready for Latte Thursday
Tue, 17 Dec 2013 17:48:50 GMT
The Wall Street Journal – The coffee chain is quickly moving toward a post-cash economy, with a third of its payments made using loyalty cards, and another 10% coming from its mobile app.

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