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A review of Starbucks news and potential strategies for bulls and bears
Related Symbols: SBUX
The Pick – Starbucks Corp. (NASDAQ: SBUX):
On March 16, UBS upgraded Starbucks Corp. (NASDAQ: SBUX) to buy from neutral. SBUX shares were trading at $25.21 at the time of UBS’ report.
Bullish Option Trading Idea for SBUX:
Maximum risk: $23.50 plus commissions
Maximum potential profit: $1.50 minus commissions
Breakeven: The strategy will be profitable if SBUX shares are trading higher than $23.50 at July options expiration.
Bearish Option Trading Idea for SBUX:
Put butterfly–
Maximum risk: $6.80 plus commissions
Maximum potential profit: $3.20 minus commissions
Breakeven: The strategy will be profitable if SBUX shares are trading lower than $28.20 at October options expiration.
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