In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these stocks may need to see a break past key support or resistance:
DECK, MDVN, UNH, TSCO, CRI, OXY, BA, IEO, BWA, EOG, DRQ, ACT, PCYC, UTHR,
NEW DIRECTIONAL CALL PLAYS
Starbucks Corp. - SBUX - close: 72.14 change: +0.54
Stop Loss: 69.95
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below
Why We Like It:
It's been a good year for shares of SBUX with the stock hitting new all-time highs back in May.
The last several weeks have seen concerns about a slowing U.S. consumer with falling sales at restaurants and certain apparel retailers. Yet investors do not seem that concerned that a slowing consumer will impact SBUX. Shares have seen a pullback from their early August high but the profit taking has been relatively mild.
Technically SBUX found support near the $70.00 level and now it's starting to breakout past the three-week trend of lower highs. Altogether the stock is poised to resume its longer-term up trend.
Today's high was $72.27. I am suggesting a trigger to buy calls at $72.35. If triggered our target is $78.00. I do expect the recent high near $74.00 to offer some short-term resistance.
Trigger @ 72.35
- Suggested Positions -
Buy the Oct $75 call (SBUX1319j75) current ask $1.10
- or -
Buy the 2014 Jan $75 call (SBUX1418a75) current ask $3.10
Entry on September -- at $---.--
Average Daily Volume = 3.0 million
Listed on September 04, 2013