Costco (COST) Offering Possible 10.13% Return Over the Next 12 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $136.00 short put and a strike $131.00 long put offers a potential 10.13% return on risk over the next 12 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $136.00 by expiration. The full premium credit of $0.46 would be kept by the premium seller. The risk of $4.54 would be incurred if the stock dropped below the $131.00 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 above 80 which suggests that the stock is in overbought territory.

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

Costco's Comparable-Store Sales for October Beat Estimates
Mon, 10 Nov 2014 22:35:02 GMT

Baidu Links With China E-Tailer To Take On Alibaba
Mon, 10 Nov 2014 22:11:00 GMT

AmEx Costco Card Seen as Crown Jewel Worth 15 Cents EPS
Mon, 10 Nov 2014 18:20:59 GMT

Insider Trading Alert – BEE, COST And KLAC Traded By Insiders
Mon, 10 Nov 2014 15:15:00 GMT

Why Walmart remains optimistic on China
Mon, 10 Nov 2014 00:22:00 GMT

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