Costco (COST) Offering Possible 5.37% Return Over the Next 36 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $130.00 short call and a strike $140.00 long call offers a potential 5.37% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $130.00 by expiration. The full premium credit of $0.51 would be kept by the premium seller. The risk of $9.49 would be incurred if the stock rose above the $140.00 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 47.99 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

Container Store pays workers on average $50,000
Fri, 17 Oct 2014 19:26:39 GMT
USA TODAY – Container Store employees are paid more than double the national average salary for retail workers.

Costco's liquor licence request knocked back by Adelaide court ahead of expansion into SA
Fri, 17 Oct 2014 03:22:39 GMT
ABC – American retail giant Costco has hit a hurdle in its Australian expansion, with a court knocking back its application for a licence to sell liquor at its first Adelaide outlet. Costco applied for a Special Circumstances liquor licence instead of a normal merchant's licence because, unlike other bottle-shops, it sold to paying members and is not open to the general public. Costco's liquor licence application was opposed by a competing bottleshop and two nearby hotels. He said granting Costco a Special Circumstances licence would have been a “concern” since it would enable the retailer “to sell liquor for off-licence consumption to a limited section of the public”.

Analysis – Costco seeks China path that avoids Wal-Mart's potholes
Thu, 16 Oct 2014 21:35:28 GMT

Costco Enters Chinese Market via Alibaba's Tmall Global
Wed, 15 Oct 2014 22:08:58 GMT

COSTCO WHOLESALE CORP /NEW Files SEC form 10-K, Annual Report
Wed, 15 Oct 2014 21:29:43 GMT

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