Costco Offering Possible 8.34% Return Over the Next 29 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 8.34% return on risk over the next 29 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 $0.77 would be kept by the premium seller. The risk of $9.23 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 36.04 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

Seattle's biggest winner: Starbucks
Fri, 24 Jan 2014 23:25:00 GMT
CNBC – With the Seattle Seahawks heading to the Super Bowl, Mad Money host Jim Cramer scouts Seattle based stocks that can turn your portfolio into a winner.

Wal-Mart to lay off 2,300 Sam's Club employees
Fri, 24 Jan 2014 21:49:00 GMT
CNBC – CNBC's Dominic Chu reports Wal-Mart is to lay of 2,300 of its Sam's Club employees, which is about 2 percent of its workforce.

Jim Cramer & Stephanie Link: Game On for Retailers
Thu, 23 Jan 2014 10:00:00 GMT
TheStreet – Jim Cramer and Stephanie Link are starting to see the retail sector become “overkilled” and they say this is the time to look at higher-quality names in the retail group.

Target cuts 475 as retail ‘transformation' hits
Thu, 23 Jan 2014 04:52:45 GMT
USA TODAY – Big retailer's business has tanked since the information-security breach in December.

Risk Reward Balances Costco
Wed, 22 Jan 2014 19:10:06 GMT
Zacks – We maintain our long-term Neutral recommendation on Costco with a target price of $122.00, as risk and reward balances itself.

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