abstract:In a biological membrane, the reversal potential (also known as the Nernst potential) of an ion is the membrane potential at which there is no net (overall) flow of that particular ion from one side of the membrane to the other. In the case of post-synaptic neurons, the reversal potential is the membrane potential at which a given neurotransmitter causes no net current flow of ions through that neurotransmitter receptor's ion channel.
With strong technicals, heavily bullish sentiment, and the potential for a sharp post-earnings move, traders might want to consider a SBUX April 60 straddle to hedge against a potentialreversal in the shares.
If you are long and want exposure to a potentialreversal of sentiment that drives stocks higher, but also have concerns about additional volatility into the summer, consider the purchase of August- or September-dated index options as a hedge.