Costco (COST) Offering Possible 18.48% Return Over the Next 27 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $175.00 short call and a strike $180.00 long call offers a potential 18.48% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $175.00 by expiration. The full premium credit of $0.78 would be kept by the premium seller. The risk of $4.22 would be incurred if the stock rose above the $180.00 long call strike price.

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

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

The RSI indicator is at 34.01 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

How Target Managed to Beat Sales Estimates
Fri, 19 May 2017 13:36:18 +0000
Target's 1Q17 sales of $16.0 billion surpassed analysts’ estimate of $15.6 billion but fell 1.1% YoY (year-over-year).

Is Costco’s Premium Valuation Warranted?
Fri, 19 May 2017 13:06:41 +0000
As of May 16, 2017, Costco was trading at a 12-month forward PE multiple of 28.5x—significantly higher than SPX's forward PE multiple of 18.8x.

Costco Wholesale Corp. breached its 50 day moving average in a Bullish Manner : COST-US : May 19, 2017
Fri, 19 May 2017 12:20:24 +0000
Categories: ETFs Yahoo FinanceClick here to see latest analysis *Disclaimer : This is as of previous day’s closing price. Technical Indicators Below is a quick look at 5 technical indicators for Costco Wholesale Corp.. More studies are available on the Technical Chart. Indicator Signal Closing Price above/below 50 Day Moving Average Bullish Closing Price above/below 200 Day Moving … Read more
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Costco Analysts Are Now Leaning This Way on the Stock
Fri, 19 May 2017 11:36:53 +0000
Analysts covering Costco remain positive on the stock, which has a consensus rating of 2.1 on a scale of 1.0 (“strong buy”) to 5.0 (“strong sell”).

Will Costco’s Margins Improve in Fiscal 3Q17?
Thu, 18 May 2017 14:37:34 +0000
Costco's (COST) margins are expected to benefit from increased fuel earnings and improved store traffic.

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