Starbucks (SBUX) Offering Possible 5.49% Return Over the Next 3 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $55.50 short call and a strike $60.50 long call offers a potential 5.49% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $55.50 by expiration. The full premium credit of $0.26 would be kept by the premium seller. The risk of $4.74 would be incurred if the stock rose above the $60.50 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 below 20 which suggests that the stock is in oversold territory.

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 Brands Earnings: 3 Takeaways
Sat, 10 Feb 2018 14:11:00 +0000
The highlights for investors from the breakfast chain's fourth-quarter earnings report.

UNM area to welcome new dining options
Fri, 09 Feb 2018 21:50:11 +0000
Seattle-based Starbucks is moving into The Shops @ UNM at 2550 Central Ave. SE. Starbucks is anticipated to have a March opening date, according to owner and developer of the project Mark Tekin, president of Tekin and Associates. Brazos Contractors and Development is the contractor for Starbuck's new 2,400-square-foot location — a bigger blueprint than a typical Starbucks, according to Tekin.

US Companies Give Back as a Result of Tax Overhaul
Fri, 09 Feb 2018 20:00:09 +0000
A recap of companies that are passing on savings as a result of US Tax Cuts and Jobs Act

Chipotle’s Same-Store Sales Growth in 4Q17
Fri, 09 Feb 2018 12:38:13 +0000
Were Investors Disappointed with Chipotle’s 4Q17 Earnings? Chipotle Mexican Grill (CMG) posted SSSG (same-store sales growth) of 0.9%, against analysts’ estimate of 0.8%. The SSSG includes a 0.6% reduction in 4Q16 due to deferred sales related to the Chiptopia Summer Rewards program. The company had posted SSSG of 17.8%, 8.1%, and 1.0% in 1Q17, 2Q17, and 3Q17, respectively.

Shake Shack Earnings: 3 Things to Watch
Fri, 09 Feb 2018 12:15:00 +0000
The better-burger chain has some important questions to answer in its upcoming quarterly report.

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