Starbucks (SBUX) Offering Possible 15.21% Return Over the Next 23 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 15.21% return on risk over the next 23 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 $0.66 would be kept by the premium seller. The risk of $4.34 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 64.56 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

Starbucks Americas sales disappoint on softer traffic
Fri, 31 Oct 2014 07:44:00 GMT

[$$] Starbucks Delivery Is Coming; Sales Rise 10%
Fri, 31 Oct 2014 03:28:45 GMT
The Wall Street Journal – Starbucks reported a smaller-than-expected 10% increase in revenue and gave a disappointing forecast. The company also said some customers will be able to use a mobile ordering app for deliveries next …

Starbucks Americas sales disappoint on softer traffic
Thu, 30 Oct 2014 23:20:36 GMT

Starbucks sees no coffee shortages despite Brazil's drought
Thu, 30 Oct 2014 23:04:29 GMT

Starbucks sees no coffee shortages despite Brazil's drought
Thu, 30 Oct 2014 23:02:34 GMT
Reuters – Starbucks Corp (SBUX.O), the world's biggest coffee chain, sees no supply shortages in beans, even as drought and disease hinder crops in Latin America and prices remain near 2012 highs. Starbucks still needs to buy one-third of its coffee needs for 2015, Chief Financial Officer Scott Maw told analysts on a conference call about fourth-quarter and full-year 2014 earnings. “We see nothing in current supply dynamics that indicates a fundamental market shortage, including origin-related concerns in Brazil,” Maw said. This situation made arabica coffee (KCc1) trading wildly volatile on ICE Futures U.S., with the price nearly doubling within three months to a 26-month peak in April.

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