Costco (COST) Offering Possible 30.04% Return Over the Next 8 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $300.00 short put and a strike $290.00 long put offers a potential 30.04% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $300.00 by expiration. The full premium credit of $2.31 would be kept by the premium seller. The risk of $7.69 would be incurred if the stock dropped below the $290.00 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 48.26 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

Wendy’s says some items will have limited availability due to beef supply disruptions, analysts find many menus are chicken-only
Tue, 05 May 2020 18:57:00 +0000
Wendy’s, Costco and Kroger have been impacted by disruptions to the beef supply chain due to COVID-19.

Where’s the Beef? Some Wendy’s Stores Run Out. Costco Limits Purchases
Tue, 05 May 2020 18:43:00 +0000
Stephens analyst James Rutherford reported that one in five (WEN) (ticker: WEN) restaurants were out of hamburger as Covid-19 roils the U.S. food-supply chain, while (COST) (COST) is limiting purchases of meat. Costco shares rose modestly on Tuesday, but Wendy’s stock is down. Rutherford had a data strategy team at Stephens look at the menu of every Wendy’s location in the U.S. and then called various restaurants to confirm.

Meat Supply Disruptions Prompt Kroger and Costco to Limit Chicken, Pork, and Beef Purchases
Tue, 05 May 2020 17:06:00 +0000
Despite President Donald Trump's executive order mandating meatpacking plants remain open through the coronavirus pandemic, serious food supply shortfalls are increasing, pushing Kroger (NYSE: KR), Costco (NASDAQ: COST), and other supermarkets to rein in customers' meat purchases. Earlier in the pandemic, Americans emptied stores of toilet paper and hand sanitizer for weeks, making the products inaccessible to many. Now it seems to be meat's turn, with Tyson Foods (NYSE: TSN) warning of a potential 50% drop in the supply as processing is disrupted across the intensely centralized industry.

Wendy's menu analysis finds as many as 10% are chicken-only due to beef supply disruptions: Stifel
Tue, 05 May 2020 15:28:00 +0000
Stifel analysts analyzed a random sampling of Wendy's Co. menus and found that 5% to 10% presented a chicken-only menu. "While we believe this is a transient issue, we expect impacts to the system's beef supply will be a flash point during the earnings call and further interruptions could lead to share price volatility in the near-term," analysts led by Chris O'Cull wrote in a report. There have been concerns about meat shortages nationwide, with reports that Costco Wholesale Corp. is limiting the amount of meat customers can purchase and Kroger Co. putting limits on the amount of pork and ground beef shoppers can buy at select stores. Meat plants, including some run by Tyson Foods Inc. , have had to shut temporarily due to COVID-19. President Trump issued an executive order for plants to remain open. "Unlike other major burger chains, Wendy's uses "fresh, never frozen" beef, which we believe gives it outsized exposure to recent disruptions," Stifel said, noting that it could be an issue when Wendy's reports first-quarter earnings, which is scheduled for tomorrow before the opening bell. Still, analysts are bullish, rating Wendy's stock buy with a $22 price target. "We continue to believe the company is well-positioned to grow the breakfast day-part as states begin to ease restrictions, providing a structural same-restaurant sales tailwind and expect the current environment has only accelerated the growth of its digital platform," the report said. MarketWatch has reached out to Wendy's for comment. Wendy's stock slumped 2.8% on Tuesday, but has climbed 1.6% over the last year. The S&P 500 index is down 2% for the past 12 months.

COSTCO AUTO PROGRAM ANNOUNCES HONDA LIMITED-TIME SPECIAL
Tue, 05 May 2020 13:00:10 +0000
San Diego, May 05, 2020 — Costco Auto Program and American Honda Motor Co., Inc. have come together to provide added value to Costco members for dependable transportation.

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