Costco (COST) Offering Possible 16.41% Return Over the Next 22 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 16.41% return on risk over the next 22 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 $1.41 would be kept by the premium seller. The risk of $8.59 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 75.89 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

Can This Grocer Compete With the Retail Goliaths?
Sun, 27 Apr 2014 19:02:20 GMT

No Discount On Costco's Shares
Sun, 27 Apr 2014 07:28:26 GMT

Why Buffett's Right-Hand Man Charlie Munger Loves Costco Wholesale
Sat, 26 Apr 2014 11:02:10 GMT

Retirement: 7 shopping tips to save you money
Sat, 26 Apr 2014 11:00:48 GMT
USA TODAY – Retirees: Don't turn shopping into a new profession and beware of bargain shopping

The Gift and the Curse of Wal-Mart’s Low-Income Customer
Fri, 25 Apr 2014 11:02:15 GMT

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