Todd Gordon remains firm about his decision to give the Starbucks trade another try. Despite having a moderate drop in stocks, the founder of TradingAnalysis.com wants to issue yet another deal with the famous coffee company in August. Starbucks reported its earnings on October 30, which gave Gordon the idea of the stock bouncing.
In an interview with Trading Nation, Gordon explains that the stocks show an impressive uptrend from 2018 (during summer) until 2019 (fall). The TradingAnalysis.com founder also states that they are “pulling back to uptrend support,” in which he clarifies, is Starbucks’ source of many touchpoints.
He mentioned wanting to sell a put spread despite the increased volatility and prices that go straight to the company. A put spread is a kind of strategy wherein there is a simultaneous selling of multiple put options.
Gordon plans on selling the November 1 weekly eighty-five-strike put together with the eighty-strike put reported in the same week. Doing so gives Todd a $141 credit once the coffee company rallies and remains close beyond $85.
If Starbucks should close beneath $80 upon the expiration date of November 1, The founder may lose $359. Gordon is hopeful despite the uncertainties. Currently, Starbucks shares are at 34%.
