TradeKing Midday Market Call Recap - $SPX & $SBUX

Featuring @BrianOverby &  @MNKahn

Quick Takes Pro MarketTechnician Michael Kahn Analyzes the S&P 500:

At the time of Michael’sanalysis, the S&P 500 index (SPX) was trading at 2083.29, down 37.37 sinceour call last week. The index is just above its 200 day moving average of2064.91 and sits below its 50 day moving average of 2100.40. Michael starts thecall by drawing a key short-term support line just under 2050 that started inMarch of 2015. He discusses recent trend line tests caused by the Greek bailoutand China’s market crash. However, we’ve seen a bit of a bounceback afteryesterday’s drop down to the 200 day moving average. Michael also noted thatthe 200 day moving average did provide support after yesterday’s down day.

Michael Kahn’s Chart ofthe Day: Starbucks (SBUX):

Starbucks was trading at56.77 during the time of analysis, above both its 50-day (53.63) and 200-day(46.14) moving averages. Michael starts by analyzing a near bearish belt holdpattern, in which the stock “jumped up, set its high right away, and thencratered intraday.” The recent earnings beat caused a quick spike, but investorsappear to have rejected the news, and the stock has lost in back-to-back days.On-balance volume has remained flat since June which suggests investors are notbuying in.

TradeKing “Options Guy”Brian Overby Analyzes Starbucks Volatility & Dividends:

SBUX’s 30-day ImpliedVolatility (IV) shot up near its 52-week high as the earnings reportapproached, dropped to 18%, and has recent spiked up closer to 20%. The 30-dayHistorical Volatility is just above 14%. Starbucks’ next dividendex-date is August 4, and is expected to pay $0.16 per share. The company justreported Q2 earnings last Thursday, July 23.

Brian Overby Shares SBUXPaper-Trading Strategies:

Short Call Spread

Long Put

Brian’s First PaperTrade -

Short Call Spread

Brian’s Second PaperTrade -

Long Put

Important notes:

Detailed SBUX Quote

Short Call Spread

Long Put

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