Options Action Friday — Tailwinds Align Ahead of Earnings for This Global Brand

Earnings season is in full swing, and analyst Sean McCloskey has a brand-new options trade for you today that could turn into a big gain ahead of this one company’s report. Details inside. Earnings season is in full swing, and analyst Sean McCloskey has a brand-new options trade for you today that could turn into a big gain ahead of this one company’s report. Details inside. [Energy and Capital logo] Options Action Friday — Tailwinds Align Ahead of Earnings for This Global Brand [Sean McCloskey Photo] By [Sean McCloskey]( Written Jul 16, 2021 I can tell my girlfriend anything — anything except: “We don’t have time to stop at Starbucks (NASDAQ: SBUX) right now.” Lucky for me, she lives in an area where there are five Starbucks within a square mile, so I never have to say that, even if time is ticking and we’re on the go. My girlfriend fires up her Starbucks app, places our order, and we’re in and out in no time. Getting our “fix” is almost too easy. And sometimes we get rewards, like free coffee! Overall, the experience is highly convenient, thoroughly delicious (try the pistachio latte next time they bring it around), and while not as cheap as a cup of coffee at Dunkin’, Starbucks’ blends probably won’t give you heartburn either. That’s why there are millions of other devout Starbucks customers like my girlfriend out there. They will hit Starbucks every morning before the commute to work like clockwork. And if their local Starbucks is closed, they will find another before accepting a substitute. Personally, I like to bring my coffee from home most of the time. But here’s the kicker — 90% of those times, it’s still Starbucks coffee in my tumbler. Sure, sometimes I’ll switch it up to Café du Monde, a wonderful French blend from the famous coffee house in New Orleans, but that’s about it. The point is most folks who try Starbucks love it and will make it a point to choose the chain whenever possible. That’s not just here in the United States either. Starbucks is in the process of building a global brand that’s as recognizable internationally as The Coca-Cola Co. (NYSE: KO) or Nike Inc. (NYSE: NKE). This dominance in the coffee industry, along with other technical and fundamental factors, is giving us a flash trade that could hand out a triple-digit return in a week’s time. Get Ready for Huge Fed Move (As Soon as July 28) Federal Reserve Chairman Jerome Powell just broke HUGE news... After months of silence, he finally admitted that the Fed is working on a digital dollar. This bombshell move could spell disaster for Bitcoin. But if you know how to position yourself, you could multiply your money by as much as 60 times in the months ahead. I expect truly historic windfalls with a “digital dollar” going live — some investors have already pocketed gains of as much as 1,585%, and that’s just the start. It’s vital you act BEFORE the Fed makes its next big announcement. [Click here for everything you need to know.]( Catalyst No. 1 — Coffee Prices Are Soaring The price of arabica coffee beans is at its highest level since 2016. The Wall Street Journal notes a mix of “insatiable demand” and smaller yields from this year’s harvest has put strong inflationary pressure on price. [Coffee Prices Rise] Source: The Wall Street Journal, FactSet For the most part, this extra cost will get passed onto consumers. But if you think a rise in the price of someone’s caramel latte or Frappuccino is going to make them stop buying their favorite morning treat, you’re mistaken. As you know, coffee is addictive, and so is the Zen-like feeling a really good cup of coffee can produce against the backdrop of a hectic city commute. Starbucks may not technically be a necessity, but for many people it’s pretty darn close. This is and has been a winning formula for Starbucks. And this sets us up nicely for a flash gain ahead of earnings. But that’s not the only tailwind behind our trade today. Catalyst No. 2 — China’s Government Seems to Like Starbucks Chinese companies with global operations are facing stark reprisals from Chinese regulators. The biggest headline focused on the communist nation’s recent focus on ride-sharing company DiDi Global (NYSE: DIDI). The dragnet involved many other big Chinese tech names as well, including Tencent Holdings (OTC: TCEHY) and Baidu Inc. (NASDAQ: BIDU). What’s clear is that due to these companies’ involvement in foreign investments, they're under significant scrutiny. [China Tech Crackdown CNBC Headline] Source: CNBC Starbucks, as far as my press releases read and inside sources tell me, remains in China’s good graces. That’s good for business and today’s trade. In fact, according to the forward guidance provided by Starbucks during the company’s last earnings call, the company plans to open roughly 600 new locations in China and over 1,100 new international locations in total. Catalyst No. 3 — SBUX Earnings Are on Deck On Wednesday, Starbucks announced it will release its third-quarter fiscal-year 2021 financial results after the market close on Tuesday, July 27, 2021, with a conference call to follow at 2:00 p.m. PST. Starbucks’ business essentially collapsed last year in the wake of the pandemic but has strongly rebounded since then. In its last earnings report, the company issued full-year guidance for fiscal 2021 with EPS in the range of $2.90–$3.00 versus the $2.84 consensus analyst estimates. CEO Kevin Johnson stated full-year 2021 revenues would come in between $28.5 billion and $29.3 billion versus the $28.53 billion consensus analyst estimates. Its digital business, for example, is turning into a huge revenue driver for the company. The company notes its reward program now has a user base of over 21 million customers. Expectations that SBUX will beat Wall Street estimates bode well for a run-up in SBUX share value leading into earnings. Plus, we have a great international growth story that I think will wow investors on the upcoming report. Moreover, Starbucks is a “Great Reopening” company, so I expect it to also beat on revenue and sales. And as I mentioned earlier, a soft rise in price across all Starbucks customers should manifest in little to no impact on overall demand. Did This $3 Firm Just Make Tesla Obsolete? There will be 12 million electric cars on the road in five years. And believe it or not, [THIS]( strange liquid could power every single one. [gcs nene liquid]( Don't believe it? See the proof for yourself... [Click here.]( Here’s the trade. Let’s Swing for the Fences on SBUX Today’s call option to consider is the Starbucks (NASDAQ: SBUX) July 2021 $123 call that expires on July 30, 2021. After spending the last two months trading in a compressed range, SBUX is breaking out. [SBUX Breakout] This is due to high earnings expectations and other tailwinds, as I outlined above. This breakout should run right into earnings, which is the time frame for our trade to pay off (roughly two weeks). Here’s what to do. Buy one or more SBUX July 2021 $123.00 calls with the expiration date of July 30, 2021. The price of this contract should be around $0.86 per share, or $86 in total for one call contract. Once you’re in the trade, our goal is to sell the contract as we near the expiration date, ideally at a price of around $2–$3 for over a 100% gain. Keep in mind, however, this is an active management strategy with fast-moving time decay and a high risk factor. We will need to check the prices daily until we reach a gain we're comfortable with based on how much time remains until expiration. Conversely, if the stock starts to slide further away from our strike price of $123, we will actively manage the downside risk and sell before the option expires, minimizing our losses. To recap: Buy one or more SBUX July 2021 $123.00 calls expiring on July 30, 2021: - Strike Price = $123 - Expiration Date = July 30, 2021 - Premium = $86 - Max Loss = $86 The way we will profit is by selling our call option(s) when in the money for a large percentage gain on our premium. Since this option expires about two weeks from today, be sure to check back in regularly for new updates on this trade and when to sell for max gains. To your wealth, Sean McCloskey Editor, Energy and Capital [[follow basic]@TheRL_McCloskey on Twitter]( --------------------------------------------------------------- 5G Wave Has Hit the Countryside Network towers have finally made their debut in rural areas. And that tells me one thing: The 5G revolution is near and investors are about to feast. This photo was taken in Spotsylvania, Virginia — out in the sticks. It's just set up its own 5G network. One of Virginia’s elected representatives, Rep. Abigail Spanberger, said it best: “Now, school kids and business people and community members are going to have the same access — because of this tower and this connectivity — that people in other parts of the region already have.” Everyone from big cities to the countryside wants a piece of this tech revolution. You see, 5G’s true power isn’t faster connectivity or more stable FaceTime calls... It’s the ability to pair with wireless sensors. We’re talking self-driving cars, telemedicine, remote surgery, advanced robotics, virtual reality — and pretty much everything that is and will be part of our lives. Now, I’m not buying the big-name companies. I’m buying a tiny company whose tech is not only vital for the 5G revolution but to other markets as well. I expect demand for these devices to skyrocket, and investors stand to turn every $1,500 into as much as $120,135. So while there’s still time, [click here now for your own chance at 4,089% gains.]( Browse Our Archives [Investors Missed the First Lithium Boom… Will You Make That Mistake Today?]( [Lifting the U.S. Embargo Against Cuba Will Create Wealth and Prosperity for Both Countries]( [How to Trade the Cuban Crisis]( [Major Correction Looms Over Stocks — Prepare Your Powder]( [Forget Tesla — Buy This for Real EV Profits]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Energy and Capital, please add newsletter@energyandcapital.com to your address book or whitelist within your spam settings. 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