Market Overview

Dan Nathan's Bearish Starbucks Trade

Share:

Dan Nathan suggested on CNBC's Options Action a bearish options strategy in Starbucks Corporation (NASDAQ: SBUX).

He explained that the company is facing a stagnation of its business in the U.S. and the management is hoping to grow the business internationally, especially in China. The recent move in the U.S. dollar is going to hurt that idea and Nathan wants to set up a bearish position in Starbucks Corporation.

Nathan wants to buy the January 55/50 put spread for $1. The trade breaks even at $54 or 2.8 percent below current market price and it can maximally make a profit of $4.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media

 

Related Articles (SBUX)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial

USD/CAD Trading Lower Ahead of Data

EUR/USD Trading Higher, Spains Trade Deficit Improves