Costco (COST) Offering Possible 96.08% Return Over the Next 21 Calendar Days

Costco's most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $360.00 short call and a strike $365.00 long call offers a potential 96.08% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $360.00 by expiration. The full premium credit of $2.45 would be kept by the premium seller. The risk of $2.55 would be incurred if the stock rose above the $365.00 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 35.32 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

Costco (COST) Gains As Market Dips: What You Should Know
Tue, 26 Jan 2021 22:45:10 +0000
In the latest trading session, Costco (COST) closed at $364.98, marking a +0.86% move from the previous day.

Dollar General Had a Great 2020. It Could Do It Again This Year.
Tue, 26 Jan 2021 15:51:00 +0000
(DG) stock is rising on the heels of an upgrade from Loop Capital saying there is plenty of fuel to keep the stock heading higher. Analyst Anthony Chukumba raised his rating on Dollar General (ticker: DG) to Buy from Hold. “Dollar General has several strategic initiatives that will drive improved financial performance in fiscal 2021 and beyond,” he wrote.

Investing in These Stocks Could Make You a Millionaire Retiree
Tue, 26 Jan 2021 11:16:00 +0000
Warehouse retailing giant Costco Wholesale (NASDAQ: COST) has been a success story for a long time, and that doesn't seem like it's going to change anytime soon. The company recently had 803 warehouses, 558 of which were in the U.S. and Puerto Rico. Costco's business model is a bit different from the traditional big retailer, because it charges an annual membership fee to customers, which delivers more than $3.5 billion annually.

Costco Finally Joins Curbside Pickup Trend With Pilot Program
Mon, 25 Jan 2021 15:11:36 +0000
Costco Wholesale Corporation (NASDAQ: COST) is joining the grocery curbside pickup trend with a pilot program at a few stores in New Mexico.What Happened: According to Costco's New Mexico webpage, consumers can place orders for curbside pickup at three Albuquerque, New Mexico warehouses.All grocery items, including fresh and select non-food items, are available for sale.Consumers go to Costco.com, select “grocery,” order food, then choose a one-hour pickup window with updates via text message about when the order will be ready.Consumers drive to a reserved part of the parking lot for their orders.Prices on items are the same online as in stores. Each order must total at least $100, and there is an additional $10 pickup fee.Related Link: Albertsons CEO: Changing Consumer Habits Are Positive For GrocerWhy It's Important: Costco is among the last major sellers of food to offer curbside options, although this was within the company's abilities. Costco is known for keeping costs as low as possible, and offering curbside pickup posed logistical problems in its parking lots.Costco customers tend to also be more affluent, and in-store promotions like free samples were designed specifically to maximize sales.Impulse purchases could decrease when orders are placed online as consumers are more likely to stick with only what they need to purchase.It shouldn't come as much as a surprise that Costco is years behind its grocery rivals, as digital initiatives have never been part of its core DNA.Walmart Inc (NYSE: WMT), as an example, started testing in-store pickup options in early 2014 and emphasized building out all aspects of digital business.Walmart, unlike Costco, has been working on a grocery delivery initiative for years.In April 2020, the company announced an Express Delivery option that promises delivery of groceries and other items to customer doors in less than two hours.Costco only started testing same-day grocery delivery options via Instacart at Canadian stores in July 2020.What's Next: Costco hasn't officially confirmed a pilot program of curbside pickup in a press release, although details are offered on its website.COST Price Action: Costco shares were down 1.04% at $358.55 at last check Monday. Photo by Nandaro via Wiki Commons. See more from Benzinga * Click here for options trades from Benzinga * AMC Entertainment Surges After Raising 7M In Fresh Capital, Avoids Bankruptcy * How Lear's M&A Strategy Helped Turned JPMorgan Bullish(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

2 Top Stocks to Buy With Your $600 Stimulus Check
Mon, 25 Jan 2021 14:51:33 +0000
Millions of people will spend some of their stimulus money stocking up on food and other supplies at Costco Wholesale (NASDAQ: COST). Costco has a simple, membership-based business model. For these and other reasons, Costco's sales growth has accelerated during the COVID-19 crisis.

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