Starbucks (SBUX) Offering Possible 6.38% Return Over the Next 31 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $85.00 short call and a strike $90.00 long call offers a potential 6.38% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $85.00 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock rose above the $90.00 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 52.86 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 Cards setting Xmas records
Thu, 18 Dec 2014 01:01:29 GMT
USA TODAY – Starbucks expects to sell a record number of Starbucks Cards this Christmas Eve.

Starbucks CEO wants to talk race in America
Wed, 17 Dec 2014 21:51:04 GMT

Howard Schultz Begins a Conversation with Starbucks Partners about Racial Issues in America
Wed, 17 Dec 2014 21:35:09 GMT
noodls – One week ago today Starbucks chairman, president and ceo Howard Schultz held an impromptu meeting in the company's Seattle headquarters that many partners (employees) said was “the most emotional, …

Starbucks China Opens New Flagship Store; Announces First-of-a-Kind Partner Development Program
Wed, 17 Dec 2014 18:14:44 GMT
noodls – Starbucks reaffirmed its commitment to elevate both the customer and partner (employee) experience in China, with the opening of the Starbucks Chengdu flagship store and the launch of a new Starbucks Talent …

Starbucks Anticipates Record Purchases of Starbucks Cards on Christmas Eve
Wed, 17 Dec 2014 14:24:14 GMT
noodls – SEATTLE, December 17, 2014 – As customers finalize their holiday shopping, Starbucks anticipates record purchases of Starbucks Cards on Dec. 24, citing the trend for customers to push their gift card purchases …

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