We have a pretty low risk trade here. You can look to buy way out of the money calls for dirt cheap after the earnings report for COST. Upside is crystal clear. Even though this stock isn't such a good value pick, as say, KSS (which has been nothing short of amazing so far), it's still a good contender to catch up to the retail rally it's been lagging.
Good luck,
Ivan Labrie.
Kommentera
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0.5-1% risk is a good starting point to get some decent leverage going. It can go to 164 give or take, so aim for that.
Just learning about out of the money calls. Very interesting. When you noticed this opportunity did you BUY a CALL for roughly 164???
IvanLabrie
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@RJHumphries, yes the 165 strike calls were a good buy.
Jan 20, 2017 expiration, 165 strike.
It opened the day yesterday at 0.79 and rallied 233%. So your profit from buying those calls was 233% of the investment closing at the top, if still holding, you're in some profit, it's at 0.98 now.
@RJHumphries, You'd need an account with a proper broker, who lets you trade options. All serious brokers do, but you need to do some paperwork, and have a large enough deposit to open one naturally.