Costco (COST) Offering Possible 19.9% 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 $149.00 short put and a strike $144.00 long put offers a potential 19.9% 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 $149.00 by expiration. The full premium credit of $0.83 would be kept by the premium seller. The risk of $4.17 would be incurred if the stock dropped below the $144.00 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 77.99 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

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Fri, 25 Nov 2016 14:40:01 GMT

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Thu, 24 Nov 2016 15:04:28 GMT

Costco Under Fire for Drug Rebate Kickbacks (COST)
Thu, 24 Nov 2016 13:40:00 GMT

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Wed, 23 Nov 2016 00:20:01 GMT

Costco drug rebate probe in Ontario goes to discipline panel
Tue, 22 Nov 2016 20:59:28 GMT
Reuters – Two executives of Costco Wholesale Corp may have sought kickbacks from drug makers in violation of Ontario law, an industry regulator in the Canadian province has found as it advances a probe into the retailer's pharmacy business. The Ontario College of Pharmacists launched an investigation into the executives for alleged misconduct after a former sales consultant for Ranbaxy Pharmaceuticals filed a complaint saying the Costco executives sought illegal rebates of up to $1.3 million on drugs supplied to the retailer. Costco has denied the allegations, saying the company and the two executives have complied with all laws.

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