Costco (COST) Offering Possible 75.44% Return Over the Next 17 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $300.00 short call and a strike $305.00 long call offers a potential 75.44% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $300.00 by expiration. The full premium credit of $2.15 would be kept by the premium seller. The risk of $2.85 would be incurred if the stock rose above the $305.00 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 32.86 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

Covid Changed the Definition of Corporate Leadership. Meet Barron’s New Top CEOs.
Sun, 28 Jun 2020 15:07:00 +0000
In a Conference Board survey, U.S. chiefs cited the possibility of a recession as their top concern for this year. In March, the global pandemic shut down entire industries overnight. None of this has been easy on CEOs—or the companies they manage.

Why Is Costco (COST) Down 4.2% Since Last Earnings Report?
Sat, 27 Jun 2020 15:30:03 +0000
Costco (COST) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Costco Was Besieged by Shoppers During the Pandemic. Its CEO Was Ready.
Sat, 27 Jun 2020 01:21:00 +0000
When stay-at-home orders hit in March, (COST) Wholesale’s nearly 550 U.S. warehouse stores remained open and were besieged by shoppers seeking essentials. Costco handled the crush. Credit for that goes to one of the most experienced management teams in retailing, led by Craig Jelinek, a 36-year company veteran who took over in 2012 from legendary co-founder Jim Sinegal.

Costco Looks to Entice Shoppers With the Return of Free Samples
Fri, 26 Jun 2020 20:55:00 +0000
Costco’s free samples are a sign of confidence about doing business in the shadow of coronavirus, but it also shows that even in ideal scenarios, the grocery business remains fiercely competitive.

CFCRE Commercial Mortgage Trust 2011-C2 — Moody's affirms six and downgrades four classes of CFCRE 2011-C2
Fri, 26 Jun 2020 18:49:14 +0000
The ratings on five principal and interest (P&I) classes were affirmed due to the pool's significant exposure to defeased loans and the transaction's key metrics, including Moody's loan-to-value (LTV) ratio and Moody's stressed debt service coverage ratio (DSCR), are within acceptable ranges. The ratings on three P&I classes were downgraded due to a decline in pool performance and higher anticipated losses driven primarily by the decline in performance and refinance concerns of the RiverTown Crossings Mall loan, representing 26% of the pool.

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