Starbucks (SBUX) Offering Possible 13.64% Return Over the Next 11 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 13.64% return on risk over the next 11 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 $0.60 would be kept by the premium seller. The risk of $4.40 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 41.34 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

Tim Hortons results beat estimates as average spend rises
Wed, 06 Aug 2014 12:16:56 GMT

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STARBUCKS CORP Financials
Tue, 05 Aug 2014 17:04:12 GMT

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Tue, 05 Aug 2014 16:52:50 GMT
noodls – What would Starbucks beverages look like if they were interpreted in another handcrafted form? At a recent South Korea fashion show, a vibrant pink blouse, belted with an oversized fabric flower, over …

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