Costco (COST) Offering Possible 25.63% Return Over the Next 13 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $237.50 short put and a strike $232.50 long put offers a potential 25.63% return on risk over the next 13 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $237.50 by expiration. The full premium credit of $1.02 would be kept by the premium seller. The risk of $3.98 would be incurred if the stock dropped below the $232.50 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 69.83 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 Efforts Propel Stock, Outpaces S&P 500 & Industry
Wed, 03 Apr 2019 15:38:03 +0000
Retail is no more restricted to brick-&-mortar, and Target (TGT) has taken steps that have improved prospects in a big way.

TJX Companies Enhances Shareholder Returns, Hikes Dividend
Wed, 03 Apr 2019 14:15:02 +0000
TJX Companies (TJX) raises dividend by 18% to 23 cents per share. Also, the company intends to buy back shares worth nearly $1.75-$2.25 billion in fiscal 2020.

The Zacks Analyst Blog Highlights: America's Car-Mart, AutoZone, Darden and Costco
Wed, 03 Apr 2019 12:49:12 +0000
The Zacks Analyst Blog Highlights: America's Car-Mart, AutoZone, Darden and Costco

3 Reasons Kroger Stock Will Stay Stuck for the Foreseeable Future
Wed, 03 Apr 2019 11:40:50 +0000
Shares of Kroger (NYSE:KR) have already started coming under fire in 2019. While the S&P 500 is up 14.5% on the year, Kroger stock is down 11%. That's not exactly a good way to start 2019 after a horrendous end to 2018.Source: Shutterstock Five years ago, KR stock seemed like a lay-up. It had a decent dividend, reasonable valuation and steady growth in a constantly in-demand industry.Everyone needs food and therefore a well-run grocery outfit was seemingly a no-brainer investment. But come to find out, that doesn't always pan out.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 8 Best Stocks to Buy for an April Rally Here are three reasons to consider avoiding Kroger stock. Secular ShiftsKroger is doing its best to keep up with the technology disruption in the grocery industry. This should help keep it defensible as other competitors also increase tech-friendly approaches to grocery stores.But Target (NYSE:TGT), Costco (NASDAQ:COST) and now Amazon (NASDAQ:AMZN) via its regular business and its Whole Foods acquisition have seemingly done a better job at moving faster. Throw in increasingly faster delivery options, meal-prep startups and a slew of other options, and KR stock is being left by the wayside.Kroger is a really tough one for me, because on paper it's a great investment. But the stock price is telling us something and as others innovate faster and as a lack of food inflation hinders its margins, it's clear that Kroger is struggling to keep pace. Valuation Isn't EnoughKroger stock may trade at 11 times earnings and yield 2.2%, but is it enough? 11 times earnings is pretty cheap, but Target has a stronger dividend and better growth with a reasonable valuation. Cheap doesn't always mean better and we don't have to look much further than the automakers to make that case.While some gravitate toward low-valuation stocks, I only use as one part of the catalyst. In fact, many other better performers trade at a higher valuation. For instance, Costco, Target, Amazon and Walmart (NYSE:WMT) all have a higher valuation than Kroger stock, and all of them have out performed KR over the past year.In fact, Kroger's 1.7% gain over the past 12 months badly lags even the second-worst performer, Walmart, and its 10.3% gain. Costco is up almost 30% in the last year. None of these stocks except for Kroger are negative year to date, while Kroger is also last on the six-month, three-year and five-year timeframes.Simply put, a low valuation is not reason enough to own Kroger. Trading Kroger Stock Click to EnlargeKroger has perhaps been one of the biggest warning signs in this whole debacle. After a late-2014 surge, KR has been nothing but trouble. And keep in mind, that's almost five-years in the making!At some point, the stock is bound to rally. It's too good of a company to be left behind forever. And unlike the low-valuation automakers, consumers need to buy food every week to stay alive. This gives some "survival" demand for a company like Kroger.That said, I'm struggling to get bullish based on these charts. Kroger stock is about $1 above its 2018 highs. If this level fails to support KR stock, then $20 is back on the table. I don't think Amazon will ruin Kroger's business model overnight, but it's not making life easy when it comes to the stock price.Amazon's announcement last month on a private-label grocery concept blasted Kroger stock below $27, a key level on the long-term charts. The 200-week moving average is rolling over and acting as resistance, while Kroger clings to the backside of prior downtrend resistance.A bounce could ensue and while a run to $29 would be a healthy return, I think that about caps the upside.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: A Close Race at the Front * 15 Stocks to Buy Leading the Financial Charge * 7 Stocks From Around the World That Beat U.S. Stocks Compare Brokers The post 3 Reasons Kroger Stock Will Stay Stuck for the Foreseeable Future appeared first on InvestorPlace.

Can Whole Foods Expansion Help Revive Amazon’s Revenues?
Wed, 03 Apr 2019 11:31:09 +0000
Amazon Cuts Whole Foods' Prices and Adds Deals for Prime Members(Continued from Prior Part)Amazon facing sluggish revenue growth Amazon (AMZN) has been struggling due to slow revenue growth and higher investments in 2019 in hiring and capital

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.