Costco Offering Possible 7.87% Return Over the Next 24 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $115.00 short call and a strike $125.00 long call offers a potential 7.87% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $115.00 by expiration. The full premium credit of $0.73 would be kept by the premium seller. The risk of $9.27 would be incurred if the stock rose above the $125.00 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 45.37 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 pays more … because it can
Thu, 30 Jan 2014 01:20:37 GMT
USA TODAY – Obama chose a Costco store in Maryland to push for a hike in the federal minimum wage.

Business Highlights
Wed, 29 Jan 2014 23:25:00 GMT
AP – ___ Stocks rise on Wall Street after 3 days of losses Investors' jitters over emerging markets faded Tuesday, and U.S. stocks rose for the first time in four days. Global stock markets stabilized after …

Companies resist president's call for minimum wage rise
Wed, 29 Jan 2014 20:37:58 GMT
Financial Times – Employers of low-wage workers attacked Barack Obama's call for a 40 per cent rise in the minimum wage even as the US president attempted to forge new partnerships with business groups to revive his second-term …

5 Ways You Can Save Money At Costco
Wed, 29 Jan 2014 14:53:00 GMT
Business Insider – Costco is a bargain-seekers paradise…

Marine Harvest CEO Has Big Plans Beyond NYSE Listing
Tue, 28 Jan 2014 21:52:30 GMT
TheStreet – Marine Harvest is listing on the NYSE so it can tap U.S. capital markets in order to grow its global aquaculture business, says CEO Alf-Helge Aarskog.

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