Costco (COST) Offering Possible 42.45% Return Over the Next 6 Calendar Days

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Costco’s most recent trend suggests a bearish bias. One trading opportunity on Costco is a Bear Call Spread using a strike $292.50 short call and a strike $297.50 long call offers a potential 42.45% return on risk over the next 6 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $292.50 by expiration. The full premium credit of $1.49 would be kept by the premium seller. The risk of $3.51 would be incurred if the stock rose above the $297.50 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 58.51 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Costco

Costco (COST) Stock Sinks As Market Gains: What You Should Know
Thu, 12 Sep 2019 21:45:09 +0000
In the latest trading session, Costco (COST) closed at $289.89, marking a -0.28% move from the previous day.

Costco: Why Oppenheimer Downgraded Its Stock
Thu, 12 Sep 2019 11:31:01 +0000
Oppenheimer downgraded Costco stock on Wednesday. Oppenheimer analyst Rupesh Parikh downgraded the stock to “perform” from “outperform.”

At Home CEO’s Gut Check Prompts ‘Revisit’ of Whole Business
Wed, 11 Sep 2019 18:02:17 +0000
(Bloomberg) — After Lee Bird witnessed At Home Group Inc. lose half its market value in one day this June, the chief executive officer decided to reconsider everything.“This past 90 days has been a revisit of our whole business,” Bird said in an interview. “We obviously lost the faith of our investors.”In response, the home-goods retailer pulled back on its ambitious store-opening plans and revamped marketing to tout what it claims are the lowest prices in the industry. And after staying out of the e-commerce fray because the cost of implementation and shipping could hamper profit, the company now plans a full online offering by 2022.The efforts come none too soon, as a shakeout in retail has left legacy chains struggling to survive the arrival of digital-first competitors like Amazon.com Inc. and Wayfair Inc. Consumers at all income levels are also more discount-oriented, using the internet to seek out deals. At Home appeared immune to these woes until June 6 when weak sales and increased costs from President Trump’s tariffs on Chinese goods led to a cut in its earnings forecast that hammered the stock.“A long list of little things have gone against the company,” said Brad Thomas, an analyst at KeyBanc Capital Markets. “A few have been company specific, but it’s more about housing slowing down about a year ago.”At Home also had little room for error, with its valuation soaring after revenue gained an average 23% annually over the past three years. But investors bolted after the company’s same-store sales fell the past two quarters — the first declines since going public three years ago. The company’s earnings have also missed analysts’ projections twice in the past three quarters.“It’s hard, but I get paid a lot of money so no one is going to tear up for me,” said Bird, who bought $500,000 worth of shares on Monday.The stock had declined 54% this year through Tuesday’s close. Just a year ago, the retailer sold additional stock to the public for $33.20 a share. The shares climbed as much as 7% to $9.16 on Wednesday, their fourth straight daily gain. The increase in value-driven shoppers should put At Home in a solid position. Much like Costco Wholesale Corp., the chain has a low-cost operating model — it opens stores cheaply in locations vacated by the likes of Sears and about 70% of its inventory is private label or exclusive.Pricing ModelThat helps the retailer keep prices low, but not enough shoppers were getting the message because of “all the noise” on discounts and deals coming from competitors, Bird said. At Home uses a pricing model of everyday low prices — a strategy popularized by Walmart Inc. that eschews promotions and instead tries to convince shoppers of constant value. Meanwhile, most retailers employ a model of high introductory prices and then discounts.“The average American is not aware that At Home is a low-price leader,” KeyBanc’s Thomas said.To help remedy this, At Home for the first time is running regular shopping events every two weeks, often tied to seasonal events. There’s currently a focus on fall decor on its website and in stores. A year ago, the chain would have been highlighting a few specific deals, but not a whole category. Early results are that it’s lifted sales, Bird said.Besides opening stores, revenue gains will also come from its first push online, he said. In the fourth quarter, the company will test letting customers buy items online and picking them up at stores. If all goes well, more locations will be added next year, with the goal of shipping purchases to customer’s homes from locations by 2022, he said.Despite the turmoil, the company still sees growing to 600 stores from 200 in the U.S. But it will get there at a slower pace, expanding 10% a year, down from a current rate of 17%. That means it would take more than a decade to reach that goal.“We know we have a huge white space in front of us,” Bird said. “I feel good about the adjustments we’ve made.”(Updates with share trading Wednesday in eighth paragraph. A previous version was corrected to show about 70% of inventory is private label or exclusive.)To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.netTo contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Lisa Wolfson, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Target (TGT) Gears Up for Holiday Season, Unveils Hiring Plan
Wed, 11 Sep 2019 13:54:01 +0000
Target (TGT) intends to hire more than 130,000 seasonal workers to provide customers a great shopping experience.

Costco Is a Retailing Star, but Now There’s ‘Less Upside’
Wed, 11 Sep 2019 13:21:00 +0000
Costco is the best-positioned company in the world of consumer staples and food retailing, yet it is getting harder for the stock to make gains, according to Oppenheimer.

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