Costco Options Analysis: New Opportunities for Investors

Investors are eyeing new options for Costco, including attractive put and call contracts expiring in September 2026. These options may be worth considering as they present a potential yield boost and premium collection strategy. The market's response could influence COST stock prices.

Date: 23-05-2025

AI Rating: 7

Impact of New Options Contracts on Costco's Stock

The introduction of new options contracts for Costco Wholesale Corp (COST) presents several potential investment strategies for professional investors. One key variable in options pricing is the time value, and these new September 2026 contracts provide ample time for price movements, which may attract premium sellers.

The notable put contract at the $1000.00 strike price presents an opportunity for investors willing to take on a slightly bearish position with upside potential. Selling this put allows an investor to collect a premium, effectively reducing their cost basis for shares purchased at the strike price. With a current bid of $91.65 for the put, investors could see a return of 9.17% on the cash commitment if the option expires worthless. These figures indicate potential interest from both investors looking to capitalize on price stability and those willing to bet on downward price action.

The call contract available at the $1100.00 strike price offers another strategic opportunity, allowing investors to participate in price appreciation while collecting a premium. This strategy will grant a total return of approximately 18.85% if the stock reaches the call's strike price by expiration. Currently, the estimated odds of this call expiring worthless are around 49%, introducing uncertainty but compensating through premium collection. Overall, this could appeal to those seeking a conservative income strategy combined with some level of capital appreciation.

Despite not explicitly mentioning the company's Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow (FCF), or Return on Equity (ROE), market analysts often juxtapose such metrics with options trading to gauge overall business health. The current trading price of COST shares at $1009.73 indicates that the stock could be experiencing some upward momentum, although further analysis of the company’s fundamentals is advisable before making substantial investments.

In summary, these options could create an attractive investment environment given the current market conditions for Costco, but comprehensive revenue and earnings analysis will be crucial for optimal investment timing.

Stocks: COST