Trader sees a Starbucks bounce ahead of earnings

  • 📰 CNBC
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 72%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

The coffee giant reports earnings on Oct. 30, and TradingAnalysis.com founder Todd Gordon spots an uptrend.

The coffee giant reports earnings on Oct. 30, and Gordon is looking at a bounce for the stock based on its chart. Gordon had"We have obviously a nice uptrend here through the summer of 2018 into now the fall of 2019," he said Wednesday on CNBC's"The first thing you'll notice is that we are pulling back to uptrend support, the source for multiple touchpoints in Starbucks.

Given that implied volatility, or the price of options, is elevated going into the company's earnings, Gordon wants to sell a put spread. He's looking to sell the Nov. 1 weekly 85-strike put and pair that with the purchase of the Nov. 1 weekly 80-strike put. This would give Gordon a credit of $141 should Starbucks rally and close above $85 on Nov. 1 expiration.

Should Starbucks close below $80 on expiration, then Gordon could lose up to $359. But the trader says that loss is unlikely, given that the breakeven for the trade is at $83.60, and the stock was trading at $86 on Wednesday.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Watching these guys live a fantasy life on a giant monopoly board is just hilarious. Paper and ink. Paper and ink.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European stocks seen slightly higher as traders await US-China talksEuropean markets were seen opening slightly higher Tuesday morning as investors await news out of high-level trade talks between the U.S. and China, set to commence on Thursday. Pay no attention to the man behind the curtain !!
Source: CNBC - 🏆 12. / 72 Read more »