I was looking into playing costco earnings. Im pretty bearish shorterm but longterm im bullish. After costco announced their previous earnings they dropped for 4-5 weeks prior to the earnings announcement before recovering to all time highs. I was looking to put money into a OTM put at the 900$ strike price expiring oct 25 or nov 1. If the price drops below my strike ill look into purchasing a longterm call for around 1200$ strike expiring 2026.
Would purchasing these calls be stupid as hell? Is there a better way to play costco earnings?
Posted by moehoemed
7 Comments
Just invest the stock. Crazy premiums to gamble for me. It’s a good long term hold – just quite pricey for me.
Buy the stock and sell covered calls OR do a put debit spread, something like buy 900p and sell 885p.. you should triple your money or so if it drops 4%. No way to make money on a 4% drop if you just buy naked puts. And it might be better to sell the covered calls if you can afford 100 shares of Costco.
Gosh I would love to own vostco can I pay today’s prices not a fucking chance.
10 to one split expected soon. Hold.
I don’t have enough money to buy ATM options on Costco and i don’t feel like gambling on options $40 OTM lol. I think it has favorable earnings though
Invest long term. No earnings pop
I would not gamble Costco
And $1200 valuation no way… economic stuff it’s so expensive it might split and then where are you?