Starbucks (SBUX) Offering Possible 10.13% Return Over the Next 26 Calendar Days

Starbucks's most recent trend suggests a bullish bias. One trading opportunity on Starbucks is a Bull Put Spread using a strike $75.00 short put and a strike $70.00 long put offers a potential 10.13% return on risk over the next 26 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $75.00 by expiration. The full premium credit of $0.46 would be kept by the premium seller. The risk of $4.54 would be incurred if the stock dropped below the $70.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Starbucks is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Starbucks is bullish.

The RSI indicator is at 68.35 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

Everyday prices are rising — Why isn't the Fed concerned?
Tue, 24 Jun 2014 13:27:53 GMT
The Daily Ticker – http://l.yimg.com/hv/api/res/1.2/HhZ836XOKnLPzTC94ccY7w–/YXBwaWQ9eWZpbmFuY2U7aD0zMTt3PTQy/http://l.yimg.com/os/en-US/video/video.pd2upload.com/video.yahoofinance.dailyticker.com@45e87309-fc61-3c15-acbe-b58ea86fc4b2_FULL.png

Here's the Reason Starbucks Is Raising Prices (and Why It's the Right Move)
Tue, 24 Jun 2014 13:02:09 GMT

Starbucks Tries To Increase Same Store Sales
Tue, 24 Jun 2014 12:28:29 GMT

Starbucks ups price on drinks, bagged coffee today
Tue, 24 Jun 2014 12:08:19 GMT

Here is what's really behind Starbucks' price hike
Tue, 24 Jun 2014 11:45:35 GMT
Breakout – http://l.yimg.com/hv/api/res/1.2/X4RWXdRGjmwF2x.dI1oLaw–/YXBwaWQ9eWZpbmFuY2U7aD0zMTt3PTQy/http://l.yimg.com/os/en-US/video/video.pd2upload.com/video.breakout.com@2c216ecd-c8f1-31c0-993c-3bee5a243a7a_FULL.jpg

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