#ibdpartner
Earnings results last night has ushered in upgrades from Wedbush, who lifted its (SBUX) target from $75 to $81/sh on Wednesday morning. Morgan Stanley lifted their target to $79 from $75 while keeping an equal weight. The buzz on the street was (SBUX) “digital initiatives” are unlocking further momentum.
We saw (SBUX) option flow, sweepers, and block size trades a week ago.
For those of you that took the initiative, congratulations. Now we need to take some profits off as volatility crush will kill IV% premium within the first hour. Sell some or all of your call options at the open. We wouldn’t consider additional options trades until IV% eases back below 30% (+/-).
Going forward, Starbuck’s (SBUX) results for the quarter are noted. Better than most expected, all things considered.
“Starbucks (SBUX) reported a 3rd Quarter June 2020 loss of $0.46 per share on revenue of $4.2 billion. The consensus estimate was a loss of $0.61 per share on revenue of $4.3 billion. The Earnings Whisper number was for a loss of $0.54 per share. Revenue fell 38.1% compared to the same quarter a year ago.”
“The company said it expects fourth-quarter earnings of $0.18 to $0.33 per share. The current consensus earnings estimate is $0.27 per share for the quarter ending September 30, 2020.” Courtesy Earningswhispers.com
Going forward, we’ll watch how price reacts to the 200d overhead. If Starbucks can breach that level look for consolidation. We’d consider a position for a longer-term swing if it can move above 79 – 80 (+/-) per share.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.
Disclosure: As an #ibdpartner, that means my use of investors’ business daily suite of services is complimentary. I also receive compensation from the company for my technical analysis services.