As the economy tightens up, consumers are starting to look at more ways to save. Data shows some belt tightening but there is still a long way to go. An obvious option for cutting costs on staples are the warehouse clubs. Of that group Costco (COST) has been on a tear and has more room to go to get to its next likely target. Take a look at the chart:
It just pushed through its 200 day moving average with its next target a previous high at about 540. This current refill has momentum and has the strength to get there. It is a rich stock at over $500 so it is a great case for considering a call option. The April 540 call options are at about $8.40 this morning. That is a relatively easy argument to make for an option. You can buy one share of the stock for 503 today or control 100 shares for 840. Not to mention that it is highly unlikely COST will hit $1000 but there is a decent chance the call option could get to $16.
This is on the short list to keep an eye on and see how it plays out.
Keep learning and trade wisely,
Market Wealth Daily