New Directional Call Play – COST
Costco Wholesale – COST – close: 91.69 change: +0.82
Stop Loss: 89.90
Target(s): 99.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Company Description
Why We Like It:
COST is a large wholesale outlet chain and probably the main rival for Wal-mart’s Sam’s Club chain. Shares of COST have been churning sideways the last few days under resistance at its highs near $92.00.
I am suggesting we launch small bullish positions if COST can trade at $92.50 or higher. If triggered we’ll start with a stop loss at $89.90. Our target is $99.00. FYI: The Point & Figure chart for COST is bullish with a $116 target.
Trigger @ 92.50
- Suggested *Small* Positions -
buy the Jul $92.50 call (COST1221G92.5) current ask $1.19
- or -
Buy the Aug $95 call (COST1218H95) current ask $0.98
Annotated Chart:
Entry on June xx at $ xx.xx
Earnings Date 10/11/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 26, 2012
— Option Investor.com
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