Costco (COST) Offering Possible 5.26% Return Over the Next 8 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $305.00 short put and a strike $300.00 long put offers a potential 5.26% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $305.00 by expiration. The full premium credit of $0.25 would be kept by the premium seller. The risk of $4.75 would be incurred if the stock dropped below the $300.00 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 44.52 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

Beware Lazy and Sleepy Investors
Tue, 10 Mar 2020 19:18:36 +0000
Investors have been awoken to the carnage of the last three weeks. These circumstances, while unenjoyable, may be hiding the actual problems with today’s market Continue reading…

Stock Upgrades: Costco Wholesale Shows Rising Relative Strength
Tue, 10 Mar 2020 17:55:00 +0000
On Tuesday, retail giant Costco Wholesale got a significant upgrade to its Relative Strength (RS) Rating, from 88 to 91. Although Costco boasts a strong RS rating, its EPS Rating is a milder 74, reflecting its slower profit growth. “Overall, a few of the stronger departments, majors, special order kiosk items, seasonal and toys and housewares, these departments generally benefited from the holiday shift,” Costco Chief Financial Officer Richard Galanti said in the company's March 6 earnings conference call, according to Seeking Alpha.

Wells Fargo Commercial Mortgage Trust 2014-LC18 — Moody's affirms eight classes of WFCM 2014-LC18
Tue, 10 Mar 2020 00:00:06 +0000
The ratings on seven P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf). Moody's rating action reflects a base expected loss of 4.8% of the current pooled balance, compared to 4.1% at Moody's last review.

Costco supply chain struggles to keep up with demand amid COVID-19 preparations
Mon, 09 Mar 2020 21:38:38 +0000
Issaquah-based Costco Wholesale Corp. was having a pretty good February, and then the first death related to coronavirus was announced in the United States. Traffic jams, long lines and emptying shelves quickly became the reality as customers rushed to the wholesale warehouses as COVID-19 cases began to mount. Costco’s February sales were “off the charts,” Chief Financial Officer Richard Galanti said during a second-quarter earnings call late last week.

3 Top Trades This Week of Safe Stocks to Buy
Mon, 09 Mar 2020 18:29:31 +0000
Stocks are plunging, volatility is skyrocketing and bears are partying like its 2008. The rush into bonds has submerged Treasury yields across the curve — even out to 30 years — below 1% for the first time in history. Given the risky backdrop, you'll be forgiven for your desire to sit on the sidelines until some semblance of normalcy returns. But for those brave enough to enter the fray, I have three top stock trades for this week that include some safe stocks to buy.What do I mean by safe? Well, for starters, these stocks have exhibited relative strength during the market meltdown. That is to say, they've fallen far less than the S&P 500. Second, they all boast betas well below the market.So, if the S&P 500 is a hare, these stocks are tortoises.InvestorPlace – Stock Market News, Stock Advice & Trading TipsMoreover, two of the three picks are also well-known for their lofty dividend payouts. So in a world where bond yields are seemingly headed toward zero, the appeal of dividend-paying stocks is on the rise. * 10 Ways to Diversify Your Portfolio at This Time of Crisis That said, here are three top stock trades to consider. Top Stock Trades This Week: Walmart (WMT)Source: Jonathan Weiss / Shutterstock.com Beta: 0.43The "safeness" of Walmart (NYSE:WMT) is on full display this morning. While the rest of Wall Street is having a rough day Monday, WMT stock is not even down 1%. That said, its resiliency is likely a byproduct of two things. First, it belongs to a defensive sector — consumer staples — with a history of outperforming during times of turmoil.Secondly, pandemic fears surrounding the coronavirus from China have boosted stocks like Costco (NASDAQ:COST) and Walmart due to the increased foot traffic as worried consumers snatch-up bottled water, toilet paper and paper products to fill their bunkers.Therefore, because both of these dynamics are likely to remain, Walmart is one of my favorite top stock trades of safe stocks to buy.The Trade: Equity lovers could buy WMT stock outright. Options traders can buy the May $120/$125 bull call spread for around $2.30. Consumer Staples Select Sector SPDR Fund (XLP)Source: Shutterstock Beta: 0.66Instead of picking individual companies and running the risk that your safe stock suddenly sours, you could opt for a more diversified play using Exchange Traded Funds (ETFs). Moreover, to harness the defensive nature of consumer staples, for example, you could purchase the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP).In addition to Walmart, its top holdings include household names such as Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO) and PepsiCo (NASDAQ:PEP).Compared to the S&P 500's 7% drubbing Monday, XLP is only down 4.5%. Furthermore, from February's peak, the fund off nearly 9%. Meanwhile, the S&P has lost almost 18% of its value over that same time period. The juicy dividend yield of 3.31% for XLP is also likely to keep buyers flocking — even if prices fall further.Remember, unless the companies comprising XLP start cutting their dividends, the cheaper you can buy the fund, the higher the dividend yield becomes. Which, is the silver lining of corrections and bear markets. Overall, these reasons make XLP a top stock trade for this week. * 5 High-Yield Dividend Stocks With Great Buyback Programs The Trade: Buy XLP stock. Options traders looking to lever up the potential returns could buy the June $60/$63 bull call spread for $1.50. Utilities Select Sector SPDR Fund (XLU)Source: Shutterstock Beta: 0.35For our final safe stock pick, we're sticking with the defensive sector theme and choosing the Utilities Select Sector SPDR Fund (NYSEARCA:XLU). Utility companies have business models that are less sensitive to economic downturns than virtually every other industry. And as such, they've held up quite well during bear markets of the past.The low beta and relative strength have been on full display this month. Compared to the S&P's whack today and recent peak-to-trough decline, XLU is down 5.7% and nearly 10%, respectively. Additionally, its dividend yield of 2.96% is almost as tasty as the consumer staples ETF.So from a charting perspective, XLU has the best looking chart of all the sectors. It's the only one still above its 200-day moving average. And while the short-term trend is a mess, the long-term picture remains healthy.The Trade: Buy XLU stock. Options traders could buy the June $65/$70 bull call spread for around $2.25.As of this writing, Tyler Craig didn't hold positions in any of the aforementioned securities. For a free trial to the best trading community on the planet and Tyler's current home, click here! More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Ways to Diversify Your Portfolio at This Time of Crisis * 3 Cannabis Stocks That Are Ready to Run * 5 High-Yield Dividend Stocks With Great Buyback Programs The post 3 Top Trades This Week of Safe Stocks to Buy appeared first on InvestorPlace.

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