Costco (COST) Offering Possible 40.85% 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 $325.00 short put and a strike $320.00 long put offers a potential 40.85% 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 $325.00 by expiration. The full premium credit of $1.45 would be kept by the premium seller. The risk of $3.55 would be incurred if the stock dropped below the $320.00 long put 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 up which suggests that the medium-term momentum for Costco is bullish.

The RSI indicator is at 69.14 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 Wholesale Corporation (NASDAQ:COST) Passed Our Checks, And It's About To Pay A US$0.70 Dividend
Sun, 26 Jul 2020 12:21:38 +0000
It looks like Costco Wholesale Corporation (NASDAQ:COST) is about to go ex-dividend in the next 3 days. Ex-dividend…

3 Stocks You Can Keep Forever
Thu, 23 Jul 2020 14:45:00 +0000
The great investor Warren Buffett has said his “favorite holding period is forever.” There are few companies worthy of a forever holding period. Walmart (NYSE: WMT) has a simple formula with a proven long-term success rate.

Better Buy: Costco vs. TJX Companies
Wed, 22 Jul 2020 12:01:00 +0000
Operating as a membership-based warehouse retailer, Costco has a loyal customer base that keeps returning for its rock-bottom prices and unique product selection. Off-price leader TJX, the parent of TJ Maxx, Marshall's, and Home Goods, is also known for its bargain prices on apparel and home goods, as well as its frequently-rotating inventory, which creates a so-called treasure-hunt experience, meaning shoppers will never find the same assortment twice. Costco and TJX's approaches have made each company relatively protected from e-commerce competitors like Amazon, and they continue to open new stores.

Jim Cramer: Let's Unmask the Anti-Mask Folks as Truly Un-American
Tue, 21 Jul 2020 23:01:00 +0000
Even the president has switched sides on this issue that could help flatten the curve and help get the economy rolling again.

Costco's (COST) Sturdy Comps, Price Management to Fuel Sales
Tue, 21 Jul 2020 13:13:01 +0000
Costco's (COST) strategy to sell products at discounted prices has helped it expand customer base. The company's differentiated product range resonates well with customers' spending habits.

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