Starbucks (SBUX) Offering Possible 18.76% 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 $77.50 short put and a strike $72.50 long put offers a potential 18.76% 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 $77.50 by expiration. The full premium credit of $0.79 would be kept by the premium seller. The risk of $4.21 would be incurred if the stock dropped below the $72.50 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 68.83 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

The Zacks Analyst Blog Highlights: Starbucks, SLM, General Electric and Coca-Cola
Fri, 27 Jun 2014 12:11:37 GMT

The Truth Behind Starbucks' Tuition Plan
Fri, 27 Jun 2014 10:30:00 GMT
Credit.com – Starbucks' announcement that it would offer “free college” to its employees got a lot of attention. So is this a good thing or a bad thing?

Starbucks' Student Debt Fillip: Too Little, Too Late?
Thu, 26 Jun 2014 15:54:43 GMT
Zacks – The innovative ‘free college' program by Starbucks highlights the willingness and urgency in the corporate world to address the deepening student loan debt crisis that has skyrocketed to over $1.2 trillion….

As India’s Tea Gains Fans, Seeking a Faster Way to Get It to Them
Thu, 26 Jun 2014 10:03:52 GMT

Starbucks Plays the Fool Once Again
Wed, 25 Jun 2014 22:26:13 GMT
Motley Fool – With a new college-tuition plan for its employees, the coffee juggernaut proves its Foolish mettle yet again.

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