Starbucks (SBUX) Offering Possible 10.38% Return Over the Next 13 Calendar Days

Starbucks's most recent trend suggests a bearish bias. One trading opportunity on Starbucks is a Bear Call Spread using a strike $56.00 short call and a strike $61.00 long call offers a potential 10.38% return on risk over the next 13 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $56.00 by expiration. The full premium credit of $0.47 would be kept by the premium seller. The risk of $4.53 would be incurred if the stock rose above the $61.00 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 58.41 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Starbucks

Who To Choose In Fast Food? KeyBanc Sizes Them Up
Thu, 04 Oct 2018 19:07:26 +0000
KeyBanc initiated coverage of eight fast food restaurant stocks , four of which with a bullish stance. The Analyst KeyBanc Capital Markets' Eric Gonzalez initiated coverage of the following names: Bojangles …

Coffee industry should emulate wine, not soda -illycaffe CEO
Thu, 04 Oct 2018 18:56:03 +0000
Persistently low coffee prices for producers across the globe are a serious threat to the commodity, said the CEO of Italian premium coffee maker illycaffe SpA, who expects prices to begin taking a toll on production in coming years. To adapt, the industry should focus on premium bean production, illycaffe's chief executive, Andrea Illy, told Reuters in an interview on Wednesday. “You would never even imagine thinking about basing the price of a bottle of wine on the price of grapes,” he said.

New coffee shop to open in former Starbucks spot in Five Points
Thu, 04 Oct 2018 17:22:45 +0000
The retail scene at Five Points South continues to buzz with a local tenant in the works for the former Starbucks space on 11th Avenue South. Little managed the original Starbucks location in Five Points South for six years. As we reported, Starbucks (Nasdaq: SBUX) closed the shop on Oct. 1, 2017.

Why Restaurant Stocks Look Ripe for a Rebound
Thu, 04 Oct 2018 15:37:00 +0000
Where we were: Many restaurants have lagged the market this year, in stark contrast to the revival in retail. For much of 2017, retail sank like a stone, as investors worried that e-commerce would kill traditional retailers.

KeyBanc: Starbucks Is A Buy Despite Recent Weakness
Thu, 04 Oct 2018 13:18:10 +0000
Starbucks Corporation (NASDAQ: SBUX) has disappointed investors on several occasions this year, which may give the impression there is little reason for long-term investors to stick around for the long term. The past three years has been difficult for Starbucks investors given an underperformance versus the S&P 500 index by over 50 points due to a variety of factors, including execution errors, lack of momentum in digital user growth, and poorer than expected performance in China, Gonzalez said in a note. Starbucks should show a re-acceleration in North American same-store sales growth after multiple initiatives like an alliance with Nestle and business simplification will better position management to focus on the two biggest markets of U.S. and Canada.

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