Costco (COST) Offering Possible 27.55% Return Over the Next 3 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $372.50 short call and a strike $377.50 long call offers a potential 27.55% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $372.50 by expiration. The full premium credit of $1.08 would be kept by the premium seller. The risk of $3.92 would be incurred if the stock rose above the $377.50 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 50.07 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

Costco (COST) Down 0.8% Since Last Earnings Report: Can It Rebound?
Sat, 09 Jan 2021 16:30:04 +0000
Costco (COST) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Costco (COST) Stock Moves 0.55%: What You Should Know
Fri, 08 Jan 2021 22:50:10 +0000
Costco (COST) closed at $369.94 in the latest trading session, marking a +0.55% move from the prior day.

Bed Bath & Beyond ‘seeing good early signs in January' despite disappointing quarter: CEO
Fri, 08 Jan 2021 18:25:02 +0000
The turnaround at Bed Bath & Beyond continues despite pressure on store traffic during the pandemic. CEO Mark Tritton talks with Yahoo Finance.

Costco Stock Eyes New Buy Point Amid Softer Sales Trend
Thu, 07 Jan 2021 21:04:52 +0000
Costco reported weaker sales trends last month as the coronavirus resurgence weighed on foot traffic during the holidays.

Better Buy: McDonald's vs. Costco
Thu, 07 Jan 2021 18:00:00 +0000
Costco Wholesale (NASDAQ: COST) and McDonald's (NYSE: MCD) are venerable companies that have proven popular with consumers over many years. Meanwhile, McDonald's shares underperformed the overall index with a more than 8% gain. With over 39,000 establishments in more than 100 countries, McDonald's golden arches are perhaps the restaurant industry's most recognizable symbol.

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