Costco Offering Possible 13.9% Return Over the Next 31 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $115.00 short call and a strike $125.00 long call offers a potential 13.9% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $115.00 by expiration. The full premium credit of $1.22 would be kept by the premium seller. The risk of $8.78 would be incurred if the stock rose above the $125.00 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 35.83 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Costco

Target cuts 475 as retail ‘transformation' hits
Wed, 22 Jan 2014 21:16:57 GMT
USA TODAY – Big retailer's business has tanked since the information-security breach in December.

Risk Reward Balances Costco
Wed, 22 Jan 2014 19:10:06 GMT
Zacks – We maintain our long-term Neutral recommendation on Costco with a target price of $122.00, as risk and reward balances itself.

Costco: One of the Leading Retailers Defying the Big Box Apocalypse
Wed, 22 Jan 2014 18:42:13 GMT
Motley Fool – Costco's low product markups and cheap goods have enabled the warehouse retailer to continue growing its customer base and its sales at a healthy pace.

Greenberg: Is Costco Vulnerable to Online Avalanche?
Wed, 22 Jan 2014 16:03:00 GMT
TheStreet – Retailers have been blaming everything and nothing for the recent spate of bad performance. In the end, however, it may be rather simple: For the first holiday ever, online shopping really appears to have …

A Wall Street Transcript Interview with Jonathan S. Raclin, a Registered Principal of Barrington Asset Management, Inc., and the Managing Director of The Enterprise Portfolio: Tax-Advantaged with Significant Current Income
Tue, 21 Jan 2014 18:29:00 GMT
Wall Street Transcript – 67 WALL STREET, New York – January 21, 2014 – The Wall Street Transcript has just published its current Value Investing and Other Strategies Report. The full issue is available by calling (212) 952-7433 …

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