Costco (COST) Offering Possible 16.55% Return Over the Next 24 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $130.00 short put and a strike $125.00 long put offers a potential 16.55% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $130.00 by expiration. The full premium credit of $0.71 would be kept by the premium seller. The risk of $4.29 would be incurred if the stock dropped below the $125.00 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 61.2 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

Cramer: Bubble in equities? Oh please
Wed, 29 Oct 2014 22:00:00 GMT

Costco isn't the only store closed on Thanksgiving day
Wed, 29 Oct 2014 20:03:00 GMT

Tigress Financial Partners Downgrades Costco
Wed, 29 Oct 2014 17:15:33 GMT

Costco employees have Thanksgiving off
Wed, 29 Oct 2014 17:15:00 GMT

COSTCO WHOLESALE CORP /NEW Files SEC form 8-K, Change in Directors or Principal Officers, Other Events, Financial Sta
Wed, 29 Oct 2014 16:58:40 GMT

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