Costco Offering Possible 5.71% 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 $116.00 short put and a strike $111.00 long put offers a potential 5.71% 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 $116.00 by expiration. The full premium credit of $0.27 would be kept by the premium seller. The risk of $4.73 would be incurred if the stock dropped below the $111.00 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 49.39 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

Target’s Amazing Innovation
Sun, 12 Jan 2014 18:00:30 GMT
Motley Fool – The words “Target” and “Awesome” aren't often synonymous these days, but a recent innovation might end up acting as a positive catalyst for the company.

Why You Should Dump Wal-Mart
Sun, 12 Jan 2014 17:00:49 GMT
Motley Fool – Wal-Mart has made headlines for overworking and underpaying its employees, but is rival Target any better? Is anybody?

Sam’s Club Has Potential in China
Sat, 11 Jan 2014 15:54:28 GMT
Motley Fool – Wal-Mart hasn’t done so hot in China, but it’s Sam’s Club brand might offer more potential for several key reasons.

Employment Report Fails to Pass the Sniff Test
Sat, 11 Jan 2014 12:00:00 GMT
Morningstar – But the economy is not all roses, either.

Why Target Received a Frigid Response North of the Border and What It Can Learn From Costco and Wal-Mart
Fri, 10 Jan 2014 23:32:30 GMT
Motley Fool – A big part of Target’s growth plan is Canada, but for the most part, Canadian consumers are none too pleased with the arrival of this large U.S. retailer.

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