Costco Offering Possible 12.74% Return Over the Next 18 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $115.00 short put and a strike $105.00 long put offers a potential 12.74% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $115.00 by expiration. The full premium credit of $1.13 would be kept by the premium seller. The risk of $8.87 would be incurred if the stock dropped below the $105.00 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 58.11 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 Earnings Preview: Superb Execution, Perennially Overvalued
Tue, 04 Mar 2014 18:27:25 GMT

Costco Wholesale Corporation Earnings: What to Expect Thursday
Tue, 04 Mar 2014 15:31:57 GMT

Insider Trading Alert – IVR, COST And WLL Traded By Insiders
Tue, 04 Mar 2014 15:30:00 GMT

Will Costco (COST) Miss Earnings?
Tue, 04 Mar 2014 15:00:08 GMT

America’s 30M hourly workers deserve a raise: Ralph Nader
Tue, 04 Mar 2014 14:44:51 GMT
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