Starbucks ($SBUX) Sinks Over 10% After Hours After Disappointing Earnings Report

starbux

 

This morning before the open I wrote about SBUX and posted a brief video of the stock.  Support had been broken, the stock looked weak, and I was positioning myself in the morning for puts.   A few minutes into the day I had my first position and I added to it late in the day and watched as SBUX took off on a strong almost 5% rally.  The buy bots went nuts 15 minutes before the close in an effort to shake out every last short.  This rally was not based upon anything other than more central bank manipulation, in this case more easing from the ECB, which is why I held my puts into the close.

Those puts I bought at $.86 and $.77 should be worth $3-$4 tomorrow morning.  Like CMG the tremendous uptrend we've seen with SBUX is now broken. Next!

 

 

 

 

 

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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