Costco (Fall '25)

In this meeting, we talked about selling a call option to collect premium when we don’t expect the stock to go up much. It’s similar to buying a put, but you’re on the other side; you take on the risk if the stock spikes, but you get paid up front. Currently, people are protesting a new store in San Jose, consumer confidence is down, retail sales have missed, and they have had a couple of recalls. However, on the positive side, Costco (COST) is expanding into untested international markets, and the press is having fun with bulk purchases, including the infamous 1,000 bottles of baby oil. Per the votes, Costco (COST) feels like it might not move much, so selling a call could be the play.