December 5, 2016  Trade Alert -  Earnings Eagle  Portfolio

Costco announces earnings after the close on Wednesday.  If the post-announcement change in price is moderate, these trades should show a gain:

 

BTO 7 COST 20Jan17 150 puts (COST170120P150)

STO 7 COST 09Dec17 150 puts (COST161209P150) for a debit of $1.66  (buying a calendar)

 

BTO 7 COST 20Jan17 155 calls (COST170120C155)

STO 7 COST 09Dec17 155 calls (COST161209C155) for a debit of $1.60  (buying a calendar)

 

Be prepared to change these price limits by $.05 or more in order to get an execution.

 
Happy trading.

 

Terry