Starbucks (SBUX) looks like it could be an interesting stock to bet against.
If it moves above 70 it means the stock is overbought, if it drops below 30 the stock is oversold.
While being overbought doesn't guarantee a reversal, a drop below the 70 mark after being overbought often signals a potential pullback.
DMI (Directional Movement Index): When the DI+ (green line) is above DI- (red line), the stock is in an uptrend.
A bear put spread With a bearish directional bias in place, all I need to do is find a suitable options structure to take a bearish trade.
Persons:
”, SBUX
Organizations:
Starbucks