Costco (COST) Offering Possible 22.85% Return Over the Next 17 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $157.50 short call and a strike $162.50 long call offers a potential 22.85% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $157.50 by expiration. The full premium credit of $0.93 would be kept by the premium seller. The risk of $4.07 would be incurred if the stock rose above the $162.50 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 56.59 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

This Frozen Food Company Can’t Figure Out What Caused a Massive Listeria Outbreak
Mon, 27 Jun 2016 21:23:28 GMT

Get a Charge Out of Costco's Credit Card Switch
Mon, 27 Jun 2016 18:00:00 GMT

How Does the New Costco Credit Card Compare?
Mon, 27 Jun 2016 13:50:01 GMT

11 Things You Need to Know About Costco
Mon, 27 Jun 2016 13:00:01 GMT

After rocky rollout, demand for the new Costco Visa is not expected to slow down any time soon
Sun, 26 Jun 2016 23:40:11 GMT

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