Costco Offering Possible 8.11% Return Over the Next 23 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 8.11% return on risk over the next 23 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 $0.75 would be kept by the premium seller. The risk of $9.25 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 31.57 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 Wholesale Corporation Announces Quarterly Cash Dividend
Thu, 30 Jan 2014 23:03:45 GMT
Marketwired – Costco Wholesale Corporation announced that today its Board of Directors declared a quarterly cash dividend on Costco common stock of 31 cents per share. The dividend is payable on February 28, 2014, to …

Motorola FAIL: What Google needs to learn
Thu, 30 Jan 2014 20:00:01 GMT
CNBC – Some people gave Google a pass on the failed Motorola experiment because they're rich and powerful but here's the lesson they need to learn, says Jon Fortt.

Costco Showing Promise Next to Retailing Giants Wal-Mart and Target
Thu, 30 Jan 2014 17:30:00 GMT
TheStreet – Three big retailers dominate the bulk of the retail market in the United States. Wal-Mart, earning revenues around $450 billion and hefty profits of some $16 billion in 2013, is the leader of the pack …

Costco pays more … because it can
Thu, 30 Jan 2014 12:53:19 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 …

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