Starbucks Corporation (NASDAQ:SBUX) is one of the stocks Jim Cramer recently put under a microscope. Cramer called it an “early-stage turnaround story,” as he commented: “Alright, next, maybe the most controversial stock in the 500, it’s called Starbucks. This is an early-stage turnaround story under the leadership of the fantastic Brian Niccol. But many investors may have gotten impatient because they don’t recognize that these turnarounds usually take a long time… Starbucks has basically been range-boun ...

Core Viewpoint - The article discusses the potential for profit through bear call spread trades in a market that may be due for a pause, specifically highlighting two candidates for such trades. Group 1: Bear Call Spread Overview - A bear call spread is a vertical spread involving the sale of one call option and the purchase of another call option within the same expiry month, generating a credit for the trader while providing protection against adverse moves [2][3] - This strategy is most effective when the stock declines, but it can also yield profits if the stock remains flat or rises slightly [3] Group 2: Candidate Analysis - Starbucks (SBUX) - Starbucks is currently trading below its 21, 50, and 200-day moving averages, with a Barchart Technical Opinion rating of 100% Sell, indicating a strong short-term outlook for maintaining the current downward trend [4] - Long-term indicators support a continuation of this trend, with potential resistance areas identified around the price level of 90 [4] - Starbucks operates as a global roaster and retailer of specialty coffee, offering a range of products including food items and premium teas, primarily through its retail stores [5] - The company also generates revenue through licensed stores, consumer packaged goods, and foodservice operations, receiving royalties and license fees from both U.S. and international licensed stores [6]