SBUX Set a New 52-Week High at $72.05 on Monday

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We are recommending another bullish trade on Starbucks (NASDAQ: SBUX ). We just closed the SBUX March 8th $69 Put Writes for a profit, which we opened last week , and we want to roll that trade out to collect even more income.

This is the third put write we've recommended on SBUX this year, and the strategy is still paying off for us.

The Fundamentals are Still Strong

Our outlook for SBUX remains positive. Though the former CEO is still talking about a potential run for president in 2020, the stock seems unaffected.

Traders still seem undeterred by Howard Shultz's campaign comments, even though the discussion is regularly making headlines.

SBUX's strong growth potential is reason enough to take a bullish position on the name, SBUX experienced global comparable store sales growth of 4% and added 541 net new stores during the previous quarter.

SBUX also offered improved guidance in its 2019 first-quarter earnings report. In its 2018 fourth-quarter report , SBUX forecasted full-year, non-GAAP EPS in the range of $2.61 to $2.66. In the first quarter of 2019 , it raised the forecast for full-year, n on-GAAP EPS to a range of $2.68 to $2.73.

The Technical Picture Looks Even Better

We want to reiterate that old resistance often becomes new support. The last time we recommended a trade on SBUX, it had found support at $69, and old resistance level. We thought SBUX might head higher if $69 support held.

Daily Chart of Starbucks (SBUX) - Chart Source: TradingView

SBUX consolidated above $70 for a few days before breaking above resistance at$71. SBUX then set a new 52-week high on Monday at $72.05, and because it bounced off that level, it could come back down to test $70 as support. If $70 becomes new support, SBUX may head higher into March.

To find out which SBUX puts we're selling - and to get access to our full portfolio of income-generating trades - consider signing up for risk-free trial subscription to Strategic Trader today.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of, as well as the co-editors of Strategic Trader .

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The post SBUX Set a New 52-Week High at $72.05 on Monday appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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