Costco (COST) Offering Possible 53.85% Return Over the Next 9 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $305.00 short call and a strike $310.00 long call offers a potential 53.85% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $305.00 by expiration. The full premium credit of $1.75 would be kept by the premium seller. The risk of $3.25 would be incurred if the stock rose above the $310.00 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 41.48 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

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.

To Fear or Not to Fear: How the Coronavirus Is Dividing Us
Mon, 09 Mar 2020 17:38:45 +0000
(Bloomberg Opinion) — Americans have become polarized over something other than politics. We’re now divided into those who are washing our hands more carefully and more often, but otherwise living as usual, and those who are buying a year’s supply of toilet paper at Costco and, at the extreme end, ordering $400 bottles of now-rare Purell.For every Covid-19 headline urging “don’t panic,” there’s another saying this epidemic is “unstoppable” or “out of control” and that we are “unprepared.” Uncertainty is still high enough that facts can be used to support either argument.People just want clear, simple numbers on the likely spread of Covid-19, when it’s likely to peak, and the odds that it will be fatal. But there’s no consensus. An interview in Vox with WHO assistant director general Bruce Aylward says the number of cases may be lower than thought but death rates could turn out to be, as suspected, over 1%. This is based on extensive investigations of the situation in China.A story in Slate this week by Harvard doctor Jeremy Samuel Faust, headlined “Covid-19 isn’t as deadly as we think,” uses data from the ill-fated cruise ship Diamond Princess to make the opposite case — arguing that once we get a handle on the extent of mild cases, doctors may find the death rate much lower than 1%.What we do know is that some people are in more real danger — people over 80, people with compromised immune systems and those with certain pre-existing respiratory conditions are at a much higher risk of death. As for the rest of us, there’s less risk but plenty of guilt. We don’t want to spread the disease by doing the wrong thing.New information is coming in all the time. A paper published in Science examines the effect of travel bans and suggests they had only a small effect on slowing the spread of the virus out of China. The researcher suggest that going forward, the more important action will be to educate people about hand washing and avoiding big public gatherings. And people should prepare to stay home for two weeks if identified as likely to be exposed — which shouldn’t require that much toilet paper.This divide between the scared and not-scared is forming natural filter bubbles. If you’re going about your normal business, you probably see there are still plenty of avocados in the supermarket. People are still going to their anti-gravity yoga classes and taking off on various weekend adventures. Most people on the street are not wearing masks.We in the non-scared bubble are seeing a self-selected sample of others like us and are cut off from the anxious, since they are spending more time either glued to their television sets or frequenting the aisles where Purell and N95 masks are sold (or were sold, until they sold out).The Boston Globe this week examined life inside the fearful bubble, describing how anxiety about the virus is making “us” crazy — “us” being those who are stocking up on dry goods and otherwise not living life as usual. “We’re being told to remain calm, but the Federal Reserve is cutting its benchmark interest rate in an emergency move, Governor Charlie Baker is urging Massachusetts schools to cancel international trips, and the MBTA is going to begin disinfecting stations every four hours,” writes Beth Teitell. “But all the guidance feels so vague.”Edicts such as “don’t panic” don’t help. It’s never good to panic and it’s not clear what constitutes panic in this case. Postponing your trip to Italy? Working from home until further notice? Canceling large public gatherings?The American Physical Society canceled its massive annual March meeting in Colorado, a big sacrifice considering that many had paid for the travel, spent weeks preparing talks, and a few had already arrived. But that was considered prudent. Smaller gatherings at churches in South Korea and Singapore have generated clusters of disease.The problem is there’s too much emotion and too little fact in media coverage, says Emmanuel Maidenberg, a psychologist at UCLA who studies, among other things, anxiety disorders. Each new U.S. death makes for an onslaught of breathless headlines. And yet progress has been incremental in answering the questions people really want answered: How big will this get?  How dangerous is it? How scared should I be?The fear itself is a problem, he says. It could be limiting life for some people, promoting unnecessary social isolation, or overwhelming the health care system.The health care system in the United States is built on encouraging some degree of medical paranoia. Under ordinary circumstances we’re told that even if we feel fine we need all sorts of tests. And so it’s natural that people will demand tests for Covid-19. So far, testing has been limited to those who are extremely ill or for select people helping scientists track the spread of disease. Harvard epidemiologist Mark Lipsitch has been warning that laboratories and hospitals could be “overwhelmed” if tests become available on demand.There are rational things to do to prepare, and businesses must plan ahead and take seriously the need to ensure sick employees can stay home without financial hardship. Preparing without panicking takes a special kind of mind; someone who can hold two opposing ideas at the same time and continue to function.As for the expensive Purell, don’t worry if you can’t buy it. Proper soap and water washing will do the job, and if you need to sanitize your hands at times when there’s no sink, you can always make your own hand sanitizer.(Corrects 11th paragraph to say South Korea instead of Japan. )To contact the author of this story: Faye Flam at fflam1@bloomberg.netTo contact the editor responsible for this story: Sarah Green Carmichael at sgreencarmic@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Faye Flam is a Bloomberg Opinion columnist. She has written for the Economist, the New York Times, the Washington Post, Psychology Today, Science and other publications. She has a degree in geophysics from the California Institute of Technology.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Coronavirus Concerns Prompts Changes At Tim Hortons, Costco
Mon, 09 Mar 2020 17:06:09 +0000
Ongoing coronavirus-related concerns prompted two companies to temporarily halt fan-favorite activities. Coffee chain Tim Hortons will not feature its yearly Roll Up the Rim promotion while Costco Wholesale Corporation (NASDAQ: COST) won't offer food samples.Roll Up The Rim Iconic Canadian coffee chain Tim Hortons, part of Restaurant Brands International Inc's (NYSE: QSR) portfolio brands, confirmed it will cancel its Roll Up the Rim contest for 2020. The contest consists of consumers rolling up the top of a coffee cup for a chance at winning a prize.The company will no longer proceed with plans to offer 81-million cups as part of the promotion amid coronavirus concerns. Tim Hortons Chief Corporate Officer Duncan Fulton told media over the weekend it "just doesn't seem like the right solution" to oversee a promotion in which many people use their mouth to roll up the rim which is then handed to an employe confirm the prize.Costco Samples Costco stores in the U.S., Canada, China, and likely elsewhere will no longer offer consumers free samples in between aisles. As noted in a viral Reddit post: "Eating samples from the same tray and then we put the food in our mouths and lick our fingers / wipe our mouths and go on to the next sample tray (read: petri dish)…. No No No No NO!Related LinksRail Union Urges Rail Industry To Respond To Coronavirus ConcernsTrucking Volumes Spike Despite– Because Of–Coronavirus ConcernsSee more from Benzinga * Costco Analyst Breaks Down Q2, Says Coronavirus Impact 'Too Unpredictable' * Beyond Meat Vs. Impossible Foods: Product Offerings And Pricing * Retail Analyst Breaks Down Target's Report, Makes The Case For Costco And Walmart Stock(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

3 Stocks to Trade Amid Coronavirus-Driven Panic Buying
Mon, 09 Mar 2020 13:18:46 +0000
Shoppers continue to stockpile everyday household items in preparation for coronavirus. Here are three stocks that may benefit.

Related Posts