Starbucks bubbleStarbucks 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.
