Costco (COST) Offering Possible 6.61% 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 $114.00 short put and a strike $109.00 long put offers a potential 6.61% 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 $114.00 by expiration. The full premium credit of $0.31 would be kept by the premium seller. The risk of $4.69 would be incurred if the stock dropped below the $109.00 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 56.33 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

Cramer: Shop for Macy's on Any Pullback Ahead of Earnings
Sun, 11 May 2014 20:00:00 GMT

Costco Wholesale Corporation's Newest Competitor: Groupon Inc?
Sun, 11 May 2014 10:38:00 GMT
Motley Fool – After announcing that it would begin selling everyday household products in bulk, investors in Groupon are probably wondering what kind of upside the strategy may have. Can Groupon take on Costco in its …

All in for value next week: Cramer
Fri, 09 May 2014 22:00:00 GMT

Gap Shares Pop on Strong Earnings Forecast After April Sales Gain
Fri, 09 May 2014 19:32:30 GMT

Costco: Wait to Buy Until Investors Lose Faith
Fri, 09 May 2014 15:01:03 GMT

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