Costco (COST) Offering Possible 43.88% Return Over the Next 29 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $380.00 short call and a strike $390.00 long call offers a potential 43.88% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $380.00 by expiration. The full premium credit of $3.05 would be kept by the premium seller. The risk of $6.95 would be incurred if the stock rose above the $390.00 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 34.8 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

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If You Put $10,000 Into Costco Stock Last January, Here's How Much You'd Have Now
Tue, 15 Dec 2020 17:15:00 +0000
Warehouse retailer Costco Wholesale (NASDAQ: COST) certainly had an interesting year in 2020. Costco ended the first quarter of fiscal year 2021 with 107 million cardholders, up 7.2% from the year-ago reading. The spring was still difficult because Costco had to adjust its operations to ameliorate the incoming health crisis, just like everybody else.

FedEx and UPS Are Limiting Package Pickups. What That Means for Retailers.
Tue, 15 Dec 2020 17:01:00 +0000
Fewer packages in the system means the companies can meet their delivery targets. But it also can also mean long lag times between customers’ purchases and shipment.

Why Is Everyone Talking About Costco Stock?
Tue, 15 Dec 2020 17:00:00 +0000
Costco Wholesale (NASDAQ: COST) has people buzzing lately, for a few reasons. Earlier this month, investors showed their dismay after the company reported quarterly sales results, and the stock was down more than 3% for the month. While their concerns centered on decelerating sales growth in November, it is hard to argue that the month's 14.6% same-store sales (comps) increase after excluding gasoline prices and foreign exchange translations is disappointing.

Costco's Big Earnings Beat Points to Further Upside
Tue, 15 Dec 2020 14:50:00 +0000
The warehouse club operator delivered another massive earnings increase last quarter, as sales growth accelerated further into double-digit territory.

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