Costco (COST) Offering Possible 10.25% Return Over the Next 30 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $150.00 short put and a strike $140.00 long put offers a potential 10.25% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $150.00 by expiration. The full premium credit of $0.93 would be kept by the premium seller. The risk of $9.07 would be incurred if the stock dropped below the $140.00 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

American Express has a strategy to win back Costco customers
Tue, 14 Jun 2016 18:38:25 GMT

Shopping for Shark Cages at Costco
Tue, 14 Jun 2016 16:32:58 GMT

Costco Wholesale Still Has a Lot of Room to Run its Pace
Tue, 14 Jun 2016 15:42:49 GMT

The Big Costco Credit Card Switch Is Happening on June 20: What You Need to Know
Tue, 14 Jun 2016 12:00:00 GMT

Walmart Decision to End Canada Visa Relationship Could Benefit Investors
Tue, 14 Jun 2016 12:00:00 GMT

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