What’s up with Costco Earnings?

Hey Five Star!

I’m coming to you from New York City. Last night, I was on “Fast Money”, on the Options Action segment talking about what could potentially happen on Costco earnings today after the close.

This is pretty time-sensitive, so here’s my full analysis with video…

The unique part about Costco is that it’s such a bullish stock, one of my favorites! BUT, historically, it doesn’t do well on earnings.

It’s interesting because there hasn’t been a run into earnings, and it’s been stuck at the $295 area of resistance…. but, there are a ton of call buyers in this stock, telling me traders are very bullish.

But, just like when the put call ratio gets lopsided, the same can happen with an individual stock. So, what do you think? Do you think the call buyers are right, and Costco will trade higher? Or, do you think Costco will trade lower on earnings, giving us a potential buying opportunity?

Check out my CNBC segment for more by clicking the image below. Hit the like if you agree, and give me your opinion in the comment section below!

Up Next...

Shifting Options Strategies as Markets Change

Trading a VIX 30 environment is not the same as trading a VIX 15 environment when you’re an options trader. As the VIX rises, especially in a steady, upward trend, a variety of factors change in the stock market. Stock Market Changes with a High VIX Typically, in a high VIX environment where the VIX … Read more

Is it “Too Late” to Short?

Whenever the market is falling, people want to know whether it’s too late to short. It’s easy to think it’s too late when it’s fallen so much, but in reality, the Nasdaq is only down about 10% year-to-date. In all respects, that’s a pretty minor buy-the-dip pullback and moment in time. I wouldn’t consider a … Read more

Capitulation, Incoming…

While indexes and key sectors have been falling, there hasn’t been true capitulation in the market. This is what we generally need to hit and maintain lows on a downward move like this. However, in this case, it has been a somewhat volatile but steadier decline than anything. Today, that is changing, as the Nasdaq … Read more

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now

Subscribe Today!

Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses.

We will never sell your information to any third parties.