Costco (COST) Offering Possible 13.64% Return Over the Next 18 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $115.00 short put and a strike $105.00 long put offers a potential 13.64% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $115.00 by expiration. The full premium credit of $1.20 would be kept by the premium seller. The risk of $8.80 would be incurred if the stock dropped below the $105.00 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 at 69.08 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

4:40 pm Costco increases quarterly dividend to $0.355 per share from $0.31 per share
Tue, 29 Apr 2014 20:40:00 GMT

Costco Wholesale Corporation Announces Increase in Quarterly Cash Dividend
Tue, 29 Apr 2014 20:37:41 GMT
Marketwired – Costco Wholesale Corporation today announced that its Board of Directors declared a quarterly cash dividend on Costco common stock and approved an increase from $.31 to $.355 per share, or from $1.24 to …

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