Costco - ER AH 3/3

Copying from @bigglyoptionoligist - Earnings Whisper Number for COST: Costco Wholesale

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Hello hellooo

So I’m thinking of playing COST calls for their upcoming earnings this week. The two options I’m looking at are slightly otm so there’s definitely a risk in that, only play if you are comfortable with the risk. The two options on my watchlist currently are the 3/4 560c and the 3/11 570. At close yesterday they were .64 and .89 respectively but I’m sure they will be a bit more with Costco being green. Will wait for a dip before entering

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Took a 3/4 560c, will average in more if it dips.

Joined you and @squishy27 with a couple calls.

We are getting close to similar COST earnings play, which entries prior to earnings burned a lot of us. Don’t forget to take profit and much easier to play once they come out this Thursday. I will look at calls or puts at open after earnings. GL all. Also, this has been running and has separated from SPY so careful not to by the top here.

Also 530 to 534 resistance on COST thus far.

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Just to clarify, this is just an IV play for now.

Closed my calls for +10%. WW

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I bought 3/4 535c last week on the dip for 2.50. I wanted to write up another DD but have too much going on atm, last earnings had a significant drop the week of earnings but finished strong on that Friday closing, though they missed their EPS %. I’ll likely sell today and see if it dips before re-entering a smaller gamble position Friday. I’m going to comb through some info today and I’ll post what I find.

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@squishy27 @nano do you mind adding your positions (strike/exp/amount/average cost) in here? We’re trying to kinda track how these go for a couple weeks.

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3/4 560c. 2 buys at $1.25

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@thots_and_prayers Just sold here for $1.40; 10% gain.

5 3/4 570c avg cost of .58. Was gonna go for the 3/11 but the 3/4 were much cheaper when I looked :beers:

Costco held up pretty well today compared to the rest of the market. In the week leading up to last ER it dropped along with the rest of the market from a high of 560 and to a close of 524 the day before earnings. Although they had good earnings, they missed some November sales estimates. It rebounded the day following earnings, closing at 558. Last earnings, I got in early but got burnt on the drop, missing the run to 558.

The only new relevant information I can find is that some expect them to announce an increase in membership fees, which they do roughly every 5 years. I expect their growing e-commerce side to report strong numbers as well. I still have my 535C, I had planned on trying to scalp it but was too busy with work and I’m comfortable holding it and watching for tomorrow.

Sold my 535c I bought for 2.5 for 9.8, Bought 545c

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Just parking this here for COST ER today 3/3/22.

Damn beat earnings, but seems wasn’t enough