Costco (COST) Offering Possible 19.76% Return Over the Next 30 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $320.00 short put and a strike $310.00 long put offers a potential 19.76% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $320.00 by expiration. The full premium credit of $1.65 would be kept by the premium seller. The risk of $8.35 would be incurred if the stock dropped below the $310.00 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 above 80 which suggests that the stock is in overbought territory.

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

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LATEST NEWS for Costco

Costco, BJ’s, Walmart’s Sam Clubs See More Shoppers Even With Uptick in Retail Restrictions
Mon, 20 Jul 2020 21:29:00 +0000
For the week of July 6, Costco, BJ’s and Walmart’s Sam’s Club each saw weekly visits rise in meaningful upticks from the prior two weeks, according to Placer.ai.

Dow Jones Cuts 150 Point Loss As Coronavirus Stock Market Rally Continues; Pfizer Jumps On Covid-19 Vaccine News
Mon, 20 Jul 2020 16:06:50 +0000
The tech-heavy Nasdaq composite outpaced the Dow Jones industrials and the S&P; 500 early Monday. Amazon stock jumped on price-target hikes.

Better Buy: Costco vs. Beyond Meat
Mon, 20 Jul 2020 11:35:00 +0000
A solid investment portfolio has a diverse mix of leading companies, some of which offer stability, while others present greater opportunities for growth. Costco is a rock, a strong candidate for continued market gains, while Beyond Meat is a new and exciting growth prospect.

Buy Costco Stock With Both Hands
Fri, 17 Jul 2020 15:39:56 +0000
Over the past six months, big-box retailer Costco (NASDAQ:COST) has proven itself to be a resilient holding for long-term investors. Costco stock fell below $300 per share in March but has since made its way to new highs amid the novel coronavirus outbreak.Source: ilzesgimene / Shutterstock.com Costco is always a buy on a pullback, but with the share price trading near all-time highs, is it still worth picking up? The answer is yes if you're a long-term investor. COST benefits from both long- and short-term catalysts that make it a valuable addition to almost any portfolio. With the market's volatility set to continue through the end of the year, investors could start building a position in Costco stock slowly and keep the firm on their watch list to buy any future dips. InvestorPlace – Stock Market News, Stock Advice & Trading Tips Costco Stock Is the Ultimate Pandemic PlayUnlike many other equities, Costco stands to benefit in almost any climate moving forward. COST stock is an obvious play in the event of renewed Covid-19 outbreaks or failed vaccine hopes. The company offers people a way to stock up on essential products at ultra-low prices. If we learned anything from the first coronavirus wave, it's that people like to panic-buy when the threat of a lockdown is looming. * 15 Growth Stocks That Are Being Propped Up By Low Rates But Costco also appeals if the pandemic is brought under control and the U.S. finds itself in a prolonged recession. If economic uncertainty causes consumers to cut back substantially, subscription services will be under threat.But a Costco membership is likely to be one of the last to go. That's because paying Costco's membership gives people access to low prices on everything from tires and fuel to bread and meat. There's a case for Costco in the ideal scenario as well — a quickly contained pandemic and a v-shaped recovery that yields economic growth sooner than expected. In that case, not only will members be unlikely to cut their membership, but more small businesses will reopen, potentially increasing their Costco purchases. Near-Term CatalystsIn the short-term, Costco looks like a worthwhile pick. Whether or not the U.S. will be able to get control of it's surging case numbers is up for debate, but there's no question that there's a real threat of renewed lockdowns in several states right now.That threat should continue to push COST stock upward as investors look for pandemic-proof bets.Not only that, but Costco appears to be on track to report impressive earnings for its fiscal fourth quarter. The firm's Q3 results were relatively muted as its April sales put a damper on rising demand in March. But strong performance over the summer should offer investors something to cheer about when the firm reports for Q4.Like the rest of its peers, Costco has been hit with coronavirus-related costs like increased sanitation, worker protection, and wage increases. But strong sales growth and improving margins should more than make up for that added expense. Beyond the PandemicSo-called "pandemic stocks" like COST are having a moment in the sun right now, but long-term investors should consider who will win and lose once coronavirus is behind us. Netflix (NASDAQ: NFLX) is one example of this.Despite its all-star performance during the pandemic, the firm's guidance suggests that the back half of the year could be a challenge in current conditions. In short, Netflix's pandemic-boost is over. Costco doesn't have that issue. Its customers were loyal before the pandemic — the firm has enjoyed a subscription renewal rate above 90% for the past few quarters. That's despite a 5% increase in membership fees. The Bottom Line on CostcoCostco is one of the best retailers on the market because of its unique business model. The firm makes most of its money through subscription fees, which makes for very predictable income. As past quarters have proven, Costco members are sticky and tend to continue renewing even in periods of economic slowdowns. There aren't many stocks on the market that offer a compelling case no matter how the pandemic plays out and COST stock is certainly one of them.Matthew McCall left Wall Street to actually help investors — by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. As of this writing, Matt did not hold a position in any of the aforementioned securities.  More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Buy Costco Stock With Both Hands appeared first on InvestorPlace.

Is Costco Stock a Buy?
Thu, 16 Jul 2020 12:45:00 +0000
The club retailer isn't in dire straits, but newcomers are paying a steep price for a company that is more fragile than it seemed pre-coronavirus.

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