I am moderately short of these two via credit call spreads. Earnings are coming out and SBUX will post a loss, that admittedly everybody expects (likely, 47 cents a share.) - closing 400 stores and readjusting to drive through only. It will be a while before they are back to their old self. Drive through is not the same as using the Starbucks experience I am used to. (I like their products but they are overpriced. With tight money coming for years, people will not spend $5 for a cup of java!) ESTY is another technology company with a P/E 167 - trying to be an online marketplace for crafts and artwork but they are not using the Amazon model and their artist are sick and tired of the high fees and cost of shipping. Today the market(dow) was up 400 points and ETSY was down! That was signal for me to be short. Well, time will tell. Earning is reported at the end of July for both!
ETSY is being pumped too much, so I had to weasel out. $SBUX is fine short(so far). Yesterday big up day, ETSY was a sleeper but today or yesterday aftermarket news and interviews (Barron article) pumped it up. People are retarded to keep this as an "investment", it is more like a fad. They make crafty masks. hmm. Now I am credit spread short of BA. into August.
I am out of BA with a small profit and into DIS - I love credit spreads when they just expire worthless - no commission, no spread to worry about...but I seldom last that long...
I am still short of SBUX and DIS via Aug options credit spread. Unfortunately, I still have 49 days for my options to expire. A long time in my opinion. From now on I will try to focus on a shorter timeframe, giving up on the time value, and focusing on volatility instead.
To me, both SBUX and ETSY are effective companies to be considered as they are holding some string reputation in the market. But ETSY is showing quite a downfall as it is not able to cope up with the volatile market, i think
i entered etsy at 59.09 on 4/16/20 for a swing trade. i'm pleasantly surprised the way it still keep moving up!