Starbucks (SBUX) Offering Possible 19.62% 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 $74.50 short put and a strike $69.50 long put offers a potential 19.62% 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 $74.50 by expiration. The full premium credit of $0.82 would be kept by the premium seller. The risk of $4.18 would be incurred if the stock dropped below the $69.50 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 60.15 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

Dunkin' Donuts coffee shops to sell flaky croissant-donut crossover
Tue, 28 Oct 2014 01:08:53 GMT

Business Travelers Pick Starbucks on the Go
Mon, 27 Oct 2014 17:22:45 GMT
New York Times – A report shows that the restaurant is the most often expensed food and beverage brand, partly because of the number of millennials among travelers.

Starbucks: From A Third Place To Another First Place
Sun, 26 Oct 2014 16:49:00 GMT

Get ready for a week full of earnings reports
Sat, 25 Oct 2014 12:30:09 GMT

Starbucks, Buffalo Wild Wings Serve Up Earnings
Sat, 25 Oct 2014 12:02:00 GMT

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