After earnings last week, there was quite a bit of options action in Costco (COST). With the pandemic in full swing, COST has performed better than many retail stocks due to the nature of its business. That is, bulk buying is exactly what people were looking for during a prolonged period of being stuck at home.
While the company posted impressive sales overall, they also had higher than expected costs due to the pandemic. As such, options activity was a mix between bullish and bearish trades - although at least one large trade looked to be extremely bullish through next January.
Jay Soloff is the Options Portfolio Manager at Investors Alley. He is the editor for Options Floor Trader, an investment advisory bringing you professional options trading strategies, with all the bells and whistles of Wall Street, but simplified so all you have to do is enter the trades with your broker. Want to Learn Butterflies and Condors? Join Me For a Live Training Session On Monday. Click here for more.
