Costco (COST) Offering Possible 25% Return Over the Next 25 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $130.00 short put and a strike $125.00 long put offers a potential 25% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $130.00 by expiration. The full premium credit of $1.00 would be kept by the premium seller. The risk of $4.00 would be incurred if the stock dropped below the $125.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Costco is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Costco is bullish.

The RSI indicator is at 57.68 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Costco

Costco Wholesale Corporation Announces Quarterly Cash Dividend
Tue, 28 Oct 2014 21:51:19 GMT
noodls – ISSAQUAH, WA — (Marketwired) — 10/28/14 — Costco Wholesale Corporation (“Costco” or the “Company”) (NASDAQ: COST) today announced that its Board of Directors declared a quarterly …

Costco Wholesale Corporation Announces Quarterly Cash Dividend
Tue, 28 Oct 2014 20:44:28 GMT
Marketwired – Costco Wholesale Corporation today announced that its Board of Directors declared a quarterly cash dividend on Costco common stock of 35.5 cents per share. The quarterly dividend is payable November 28, …

Chain-Store Sales Pick Up Pace Ahead Of Halloween
Tue, 28 Oct 2014 20:40:00 GMT

Costco: Our employees ‘deserve' Thanksgiving off
Tue, 28 Oct 2014 14:02:00 GMT

Why Costco Pays Its Retail Employees $20 An Hour
Thu, 23 Oct 2014 20:15:00 GMT
Business Insider – Last week, we wrote about The Container Store…

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