Costco (COST) Offering Possible 13.9% Return Over the Next 9 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $140.00 short call and a strike $145.00 long call offers a potential 13.9% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $140.00 by expiration. The full premium credit of $0.61 would be kept by the premium seller. The risk of $4.39 would be incurred if the stock rose above the $145.00 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 25 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

Probe Alleges Animal-Welfare Abuses at Costco’s Egg Supplier
Wed, 10 Jun 2015 04:08:16 GMT

Humane Society alleges unsanitary conditions at egg supplier
Tue, 09 Jun 2015 22:35:12 GMT

Humane Society alleges unsanitary conditions at egg supplier
Tue, 09 Jun 2015 22:35:12 GMT

Animal welfare group says Costco egg supplier mistreats hens
Tue, 09 Jun 2015 19:42:03 GMT

American Express: Why the Loss of Costco Might Not Be a Total Disaster
Tue, 09 Jun 2015 17:22:00 GMT

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