OptionsHouse

Options Trading News

September 17, 2013  Tue 8:11 AM CT

SBUX: SEE CHART GET CHAIN FIND STRATEGIES
You can't blame anyone for ringing the register at the end of yesterday's session. You had the violence in Washington. You had the president's polemical press conference. You have a Fed meeting coming down the pike.

So why not take something off the table? In fact, the reversals in a lot of growth stocks were pretty bitter. Starbucks was up a buck at one point. Under Armour got crushed. Facebook totally crumpled. Apple is just horrendous.

TheStreet.com logoThe toughest thing about this market is how hard it is to resist. You had to, in retrospect, sell everything at the open with the hope that you could get back in at the end of the day, and that is a lot of needle-threading.

The only groups that didn't just fold were aerospace and transports, both of which have been strong for ages now. Boeing broke out on a research note, for heaven's sake. That's the innate bullishness of this tape.

Tomorrow we will hear endless chatter about Fed tapering. So who wouldn't want to take something off ahead of that?

Disclosures: Cramer's charitable trust is long AAPL and FB.
Share this article with your friends


Related Stories

SBUX

Short-term put buyers hitting Starbucks

February 11, 2016

The coffee giant has fallen 10 percent in the last three months, and traders are positioning for more downside potential by the end of next week.

SBUX

What's behind call selling in Starbucks

January 22, 2016

Traders apparently believe that upside potential will be limited in the coffee chain, which fell in extended trading on a disappointing outlook last night.

OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »