Trade of the Day: Costco (NASDAQ:COST)

To receive further updates on this Costco (NASDAQ:COST) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today

Today, we’re recommending a new bullish trade on a wholesale retailer that is scheduled to release its quarterly earnings on Dec. 7, after the market closes, and we see good things for the stock in the run up to that announcement.

Shifting trading sentiment on Wall Street and shifting consumer confidence in the United States in the wake of the Trump win continue to bolster the market and have laid the groundwork for a strong month in the retail sector leading up to Christmas. Consumers are looking forward to the potential of strong job growth and tax cuts under a Trump administration, and that means more consumer spending.

The stock we are focusing on today is in a perfect position to take advantage of this new trend with its high-end bulk products and its stable, membership-fee-paying customer base, and we expect it to see widening margins moving forward as it continues to compete in product lines — and bulk sizes — that other online retailers have failed to effectively compete with.

‘Buy to open’ the COST January (2017) 155 Calls (COST170120C00155000) for a maximum price of $3.25.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.


Article printed from InvestorPlace Media, https://investorplace.com/2016/11/trade-of-the-day-costco-nasdaqcost/.

©2021 InvestorPlace Media, LLC