NEW DIRECTIONAL CALL PLAYS
Costco Wholesale Corp. - COST - close: 119.20 change: +0.56
Stop Loss: 116.90
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on October 9th
New Positions: Yes, see below
Why We Like It:
COST operates over 630 wholesale membership warehouses.
Same store sales have shown consistent +4% growth the last couple of months. Management actually lowered their guidance in early September but that didn't stop investors from pushing shares to new relative highs.
COST's rally has stalled near resistance at the $120 level. Yet after a multi-day consolidation sideways above the $117 mark this stock looks poised to breakout higher. The early August high was $120.20. I am suggesting a trigger to buy calls at $120.30. If triggered our target is $127.50. However, we will plan on exiting positions prior to the earnings report on October 9th.
Trigger @ 120.30
- Suggested Positions -
Buy the Oct $120 call (COST1319j120) current ask $1.90
Entry on September -- at $---.--
Average Daily Volume = 1.5 million
Listed on September 19, 2013