Costco (COST) Offering Possible 25.94% Return Over the Next 20 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $162.50 short call and a strike $167.50 long call offers a potential 25.94% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $162.50 by expiration. The full premium credit of $1.03 would be kept by the premium seller. The risk of $3.97 would be incurred if the stock rose above the $167.50 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 below 20 which suggests that the stock is in oversold territory.

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

Costco Wholesale Corporation in 5 Charts
Thu, 29 Jun 2017 22:36:00 +0000
Here are the trends for investors to watch as the retailer works to boost its membership rolls despite brutal competition.

Costco buys land to build Westside location for $3.4 million
Thu, 29 Jun 2017 18:30:10 +0000
Costco Wholesale Corp. has purchased about 16 acres of Westside land just off Collins Road to build its second Jacksonville location. Harmony Farms of Jacksonville LLC sold the property on Parramore Road to Costco for $3.4 million. Costco filed for a building permit in 2016, but had not moved forward on its plans until now.

Technology Stocks Smashed as Biotech Soars
Thu, 29 Jun 2017 18:00:00 +0000
Money has been moving out of the technology sector and into biotech stocks since mid-June. Why?

Staples, Inc. — Moody's places Staples' Baa2 long-term and Prime-2 ratings on review for downgrade
Thu, 29 Jun 2017 16:28:08 +0000
Rating Action: Moody's places Staples' Baa2 long-term and Prime-2 ratings on review for downgrade. Global Credit Research- 29 Jun 2017. Approximately $1 billion in rated debt affected.

Another Whole Foods Bidder Is Unlikely to Emerge; Here's Why
Thu, 29 Jun 2017 13:34:00 +0000
The market can't stop talking about a bidding war for the organic grocer, but it's not going to happen.

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