Starbucks bubble

2019年7月15日

Starbucks went parabolic for no particular reasons. Expansion in Asia is likely to hit the brick wall of US-China trade war. The company recently racked up an enormous amount of debt and has gone equity negative. The price is almost double future cashflow . Yet the price keeps climbing to psychological level 90 completing clear wave count in a rising wedge on 1H chart.

Big short
Building positions around 2 strikes:
- 50% of the position - October put 85
- another 50% of the position - November puts @65

Exit strategy - liquidating positions based on PA.

2019年7月17日

注释

the stock may not have finished its advance

2019年7月18日

注释

the stock continued subdividing almost as projected yesterday. The advance should be at its completion and the price shall reverse in the next coming days. My options lost 40% of their value so far and I am thinking about adding another pitch of them if the reversal is in place.