NEW DIRECTIONAL CALL PLAYS

Costco Wholesale - COST - close: 80.40 change: -0.12

Stop Loss: 78.75
Target(s): 83.90, 87.50
Current Option Gain/Loss: +0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
COST is a bullish candidate that has not broken its long-term up trend. Aside from weakness in early June the stock has been somewhat resistant to the market's downturn. Now shares are bouncing from short-term support. This looks like an opportunity to buy calls and limit our risk with a tight stop loss. If the stock market continues to rebound then COST could retest its highs near $84 soon. If not then we'll be stopped out fairly quickly. FYI: The Point & Figure chart for COST is bullish with a $110 target.

- Suggested (SMALL) Positions -

Buy the July $80 call (COST1116G80) current ask $1.78

- or -

Buy the Aug. $82.50 call (COST1120H82.5) current ask $1.55

Annotated Chart:

Entry on June 24 at $ xx.xx
Earnings Date 10/05/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 23, 2011