Costco (COST) Offering Possible 22.85% 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 $232.50 short put and a strike $227.50 long put offers a potential 22.85% 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 $232.50 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 dropped below the $227.50 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 75.18 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

Why Darden Restaurants Stock Can Keep Winning
Mon, 25 Mar 2019 15:14:04 +0000
Darden Restaurants (NYSE:DRI) stock is having a great fiscal 2019, and the reason is Olive Garden.Source: Mike Mozart via Flickr (Modified)Olive Garden, an Italian-restaurant chain found outside many suburban malls, represents about half of Darden's revenue, and is its fastest-growing brand. In the third quarter, its revenues were up 5.3% year-over-year to $1.13 billion, and its profits rose 9% to $247 million. Olive Garden accounted for about half the company's revenues, which came to $2.24 billion, and more than half its profit. * 7 Marijuana Stocks to Play the CBD Trend The great numbers led the stock to a rise of nearly 7% on March 21, to $116, but even that price may be reasonable for a middle-aged investor (who is, by the way, squarely in the Olive Garden market) who wants both capital gains and dividends.InvestorPlace – Stock Market News, Stock Advice & Trading TipsOlive Garden's growth and profitability have helped make DRI stock one of the better investments of the decade. Over the last five years, DRI stock is up 156%. Compare that to Costco Wholesale's (NASDAQ:COST) gain of 114%. The quarterly dividend of Darden Restaurants stock has risen about 35%, from 55 cents per share to 75 cents. Room to GrowOlive Garden is middle-class dining that feels like fine dining, with menus that feature low-cost food items like bread sticks and pasta. But DRI has a second chain that's now doing just as well, the fine- dining restaurant called Capital Grille, where same-store sales for the third quarter were up 4.3%, in-line with Olive Garden's gain.Not everything is working for DRI stock. Same-store sales at DRI's Caribbean-themed Bahama Breeze chain fell 3.7% YoY. The SSS of Cheddar's Scratch Kitchen, a casual-dining chain featuring hamburgers and other comfort foods, were down 2.7%.A bear might say DRI stock has trouble. A bull would say it still has room to advance. The company's net earnings — $223 million or $1.79 per share fully diluted — cover its dividend more than twice over.TV analysts have long sung the praise of DRI, and for good reason. That dividend of Darden Restaurants stock represents a respectable yield of 2.76% for current investors, and the stock's performance over the last five years is nearly double that of Starbucks (NASDAQ:SBUX), which gets most of the industry buzz, and is up "just" 96% in that time. Listing to StarboardDarden wasn't always a big winner.Five years ago, activist investor Starboard targeted the company, criticizing the food at the Garden, and eventually gained control of DRI. Starboard brought in a new CEO, Gene Lee, who simplified the menu, stripping it back to its Italian roots, added higher-priced wines and improved its service. Starboard then took its profit in DRI stock in 2016. The success of Olive Garden and Capital Grille is now in the process of being replicated at Longhorn Steakhouse. which DRI acquired in 2007.If Cheddar's and Bahama Breeze can get the same attention that Starboard has lavished on Olive Garden, DRI could be on the path to even faster growth. That's why, even at its current price, 14 of the 26 analysts following Darden Restaurants stock have it on their buy lists. The Bottom Line on DRI StockWhat the success of Darden's indicates is that middle-class American dining tastes are becoming further upscale as the economy continues to grow.A focus on youthful exuberance, boozy drinks and simple fare like hamburgers is being replaced with a focus on white tablecloth experiences, albeit at an affordable price. Darden's success gives management room to hike the dividend of DRI stock after it reports its fourth-quarter results this summer.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Why Darden Restaurants Stock Can Keep Winning appeared first on InvestorPlace.

The Zacks Analyst Blog Highlights: Netflix, Amazon, Costco, Cisco Systems and Walmart
Mon, 25 Mar 2019 12:19:12 +0000
The Zacks Analyst Blog Highlights: Netflix, Amazon, Costco, Cisco Systems and Walmart

Costco vs. Sam's Club: What's the Difference?
Mon, 25 Mar 2019 09:16:24 +0000
Big retailers like Walmart Inc. (WMT) and Target Corp. (TGT) use low prices to draw in customers, but this is not a model that works for everyone. Other retailers must find different ways to drive consumers to their businesses. We see those that focus on healthy foods, locally grown or made products, specialty niche stores, those that only carry high-end brands, those that only carry low-end brands, and in the case of Costco Wholesale Corp. (COST) and Walmart unit Sam’s Club, those that only sell in bulk. Costco is considered the original bulk retailer.

4 Reasons to Not Renew Your Costco Membership
Sun, 24 Mar 2019 14:16:00 +0000
The chain can save you money — but only if you use your membership.

3 Blue-Chip Stocks to Buy Right Now
Fri, 22 Mar 2019 20:36:08 +0000
Today, we have highlighted three blue-chip stocks that look like buys at the moment amid the market's larger comeback, driven by growth from tech giants such as Netflix (NFLX), Facebook (FB), and Amazon (AMZN).

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