Costco Offering Possible 8.46% Return Over the Next 9 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $121.00 short put and a strike $116.00 long put offers a potential 8.46% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $121.00 by expiration. The full premium credit of $0.39 would be kept by the premium seller. The risk of $4.61 would be incurred if the stock dropped below the $116.00 long put 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 below 20 which suggests that the stock is in oversold territory.

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LATEST NEWS for Costco

October Retail Sales Ring Up Ahead Of Holiday Rivalry
Thu, 07 Nov 2013 23:23:00 GMT
Investor's Business Daily – October Retail Sales Ring Up Ahead Of Holiday Rivalry

U.S. retailers' October same-store sales
Thu, 07 Nov 2013 21:32:22 GMT
Reuters – Click on the attached link for a table that compares U.S. retailers' reported October same-store sales with analysts' estimates published by Thomson Reuters.

Costco Reports $8.2 Billion in October Sales
Thu, 07 Nov 2013 20:32:05 GMT
Motley Fool – Costco's October sales of $8.2 billion were an increase of 6% from the same period last year.

[$$] The Best Things to Buy at Costco: Options
Thu, 07 Nov 2013 18:34:00 GMT
Barrons.com – Costco Wholesale, seller of giant cans of tuna fish and massive tubs of detergent, is trading like Twitter in the options market. Investors are paying top-dollar to buy Costco (COST) calls as the stock pushes to new highs. Twitter (TWTR), which went public Thursday, should be so lucky to attract as much bullish call trading when its options are listed Nov. 15. The interest in Costco was sparked by better-than-expected October same-store sales.

October Retail Sales Solid As L Brands, Costco Beat
Thu, 07 Nov 2013 18:23:00 GMT
Investor's Business Daily – October Retail Sales Solid As L Brands, Costco Beat

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