Costco (COST) Offering Possible 63.93% Return Over the Next 21 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $385.00 short put and a strike $380.00 long put offers a potential 63.93% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $385.00 by expiration. The full premium credit of $1.95 would be kept by the premium seller. The risk of $3.05 would be incurred if the stock dropped below the $380.00 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 at 52.59 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

Black Friday Will Be Great for Shoppers. It Won’t Matter Much for Retail Stocks.
Wed, 25 Nov 2020 17:50:00 +0000
Whatever Black Friday may bring, it seems likely that the biggest retailers will continue to do so through the holidays.

Is Costco Stock a Buy?
Wed, 25 Nov 2020 16:00:00 +0000
Costco (NASDAQ: COST) stock has been a longtime favorite of investors. Costco can offer consistently low prices, too, which has helped it gain market share through a wide range of industry selling conditions — including the recent pandemic-related disruptions. The COVID-19 pandemic has scrambled demand trends in the retailing world, but the disruption hasn't changed much about Costco's steady leadership position.

Is BJ's Wholesale Club Stock a Buy?
Wed, 25 Nov 2020 11:55:00 +0000
BJ's Wholesale (NYSE: BJ) has long remained a struggling retailer overshadowed by larger peers such as Costco and Walmart's Sam's Club. Although founded at about the same time as Costco, BJ's has not seen as much growth as its West Coast-based peer. Costco covers nearly every U.S. state and operates warehouses on four continents.

Black Friday 2020: Retail winners and losers
Tue, 24 Nov 2020 15:49:53 +0000
Black Friday came early this year as retailers spread out their deals prior to the day after Thanksgiving.

Don’t Overlook Sales at These 9 Retailers
Tue, 24 Nov 2020 12:00:00 +0000
With the holiday shopping season already in full swing, all eyes are on sales in the retail sector. To find retailers with strong sales going into the holiday shopping season, Barron’s used FactSet to sort for North American retailers in the S&P 500 and Nasdaq Composite worth more than $5 billion, and then ranked them by enterprise value to sales, a metric that takes long-term debt into account.

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