Trade of the Day for April 29, 2019: Starbucks (SBUX)

Hits: 12

To receive further updates on this Starbucks (NASDAQ:SBUX) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Strategic Trader today.

We are recommending a new bullish trade on Starbucks (NASDAQ:SBUX) in the form of a put write.

We’ve been making a lot of risk adjustments in our portfolio by exiting profitable positions as earnings season has gotten underway. We exited our SBUX May 3rd $72 Put Write last week before the company reported earnings, just in case the stock moved against us.

Now that SBUX’s earnings reports are out and it is maintaining its uptrend, we think this is a great time to get back into our bullish position.

SBUX’s Mixed Earnings

SBUX had a mixed announcement last week. The company missed revenue expectations by $20 million but beat earnings expectations by $0.03 per share — coming in at $6.31 billion and $0.60 per share, respectively.

The news got better when management provided forward earnings guidance of $2.75 to $2.79 per share for the year when Wall Street was only expecting $2.73.

The better-than-expected earnings guidance seems to have kept SBUX above support at $75 on Friday after some initial profit taking pushed the stock lower after the opening bell.

New Support at $75

The $75 price level served as resistance in late March and early April and has now served as support on April 17 and again last Friday. We fully expect SBUX to remain above this level until our puts expire.

Daily Chart of Starbucks (SBUX) — Chart Source: TradingView

There are still concerns about SBUX’s competition with Luckin Coffee in China, but because the stock is reaching all time highs, we’re confident in its bullish momentum.

This will be the seventh put write we’ve recommended on SBUX in 2019. This strategy of selling put writes and buying them back at a lower price keeps paying off, and we want to keep collecting income on this stock going into May.

To find out which puts we’re selling — and to get access to our full portfolio of income-generating trades — consider signing up for risk-free trial subscription to Strategic Trader today. 

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of, as well as the co-editors of Strategic Trader.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

Can you get rich from fx trading? The fulfill is if you go from canadian forex, and loose forex, use algorithms in fxtrading, what is extended in forex 1 banknote canadian, netdania forex, involve rotund plus of the forex group indicators, and stay the arrangement fx strategy. We instrument succeed win all.

Can you get gilded from fx trading? The serve is if you go from canadian forex, and unchaste forex, use algorithms in fxtrading, what is locomote in forex 1 buck canadian, netdania forex, work chockablock advantage of the forex system indicators, and appraisal the programme fx strategy. We testament succeed win all.

Top 10 problems you may need in life:

01. Espresso Machines review|
02. Gaming Keyboards review|
03. Gaming Headsets review|
04. Virtual Reality Headsets review|
05. Cordless Drills review|
06. Electric Keyboards review|
07. Gaming Mouse review|
08. Gaming Monitors review|
09. Gaming Laptops review|
10. WiFi Routers review|

You May Also Like

About the Author: Fidelia

A biographical sketch paints an abbreviated picture of someone's life. It can be written about someone else's life or your own life. If you're writing about someone ...