Starbucks (SBUX) Offering Possible 27.55% Return Over the Next 6 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 27.55% return on risk over the next 6 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 $1.08 would be kept by the premium seller. The risk of $3.92 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 at 35.03 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Starbucks

Starbucks vs. Dunkin’ Brands: Which Coffee Stock Is Right for You?
Fri, 12 Oct 2018 00:47:57 +0000
Find out which coffee retailer is a better investment.

My Charts on Starbucks Indicate That Ackman Is Wrong
Thu, 11 Oct 2018 19:26:00 +0000
Aggressive buying by Bill Ackman has not made a great improvement on the charts of Starbucks Corp. The other day Bill Ackman announced that his hedge fund had invested $900 million in SBUX and that he saw the share price doubling in three years. In this daily bar chart of SBUX, below, we can see that aggressive buying in the past two months as the On-Balance-Volume (OBV) line rose sharply.

Should You Get into the Sizzling McDonald’s Stock?
Thu, 11 Oct 2018 14:10:06 +0000
McDonald’s (NYSE:MCD) stock has seen higher prices since a dip in mid-September. Following an analyst upgrade yesterday on Oct.10, MCD stock initially opened up 2%, but ended the day down amidst the global stock market sell-off. Despite the current volatility, I expect the positive momentum in McDonald’s to continue well into the earnings report later in the month.

Starbucks adds subsidized backup daycare benefit
Thu, 11 Oct 2018 12:38:52 +0000
Starbucks is adding subsidized backup daycare for children and adults to its extensive list of worker benefits in a partnership with Care.com, a company that connects families with caregivers.  Starbucks will provide employees with up to 10 subsidized backup care days at a cost of $1 an hour for in-home care for children or adults, or $5 a day for each child at a child care center, per CNN.  Employees will also have access to a premium membership at Care.com, which usually costs $150 a year, and to advisors who can help them develop long-term care plans. The caregiving services will be provided in partnership with Care.com’s (NYSE: CRCM) Care@Work program, which works with corporate clients including Twitter and Facebook. Through the app, employees can find, book and manage family care needs as they arise on a 24/7 basis.  The new benefit expands Starbucks’ (NASDAQ:SBUX) family-friendly portfolio of benefits, which already includes paid parental leave, adoption-expense reimbursement of up to $10,000 and a partner and family sick time benefit, which allows U.S. employees to accrue paid sick time based on hours worked and use it for themselves or when a family member needs care.

Vetting the activist stakes in Starbucks, Campbell Soup a…
Wed, 10 Oct 2018 23:12:00 +0000
Jim Cramer breaks down what activist investors could bring to the table at Starbucks, Campbell Soup and PPG Industries.

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