Options Update: How to Play Costco

The video discusses the market's lack of volatility ahead of the FOMC meeting, indicating a sense of complacency. It then shifts focus to a specific trading strategy involving Costco, highlighting technical patterns and fundamental factors that make it a favorable investment. The strategy includes a three-legged trade to optimize costs.

What does the low VIX Futures settlement indicate about the market's expectations for the FOMC meeting?

• The market is not expecting much movement.

• The market is anticipating significant movement.

• There is a lot of hedging activity.

• High volatility is expected.

What is the main goal of the Costco trading strategy discussed?

• To avoid any risk.

• To reduce the cost of the trade.

• To increase the stock price.

• To sell more shares.

Which type of option is used to cheapen the cost of the Costco trade?

• Put option

• Futures contract

• Call option

• Swap

What technical pattern is mentioned as a positive indicator for Costco's stock?

• Double top

• Bull flag

• Head and shoulders

• Bear flag

What is one of the fundamental factors contributing to Costco's favorable stock performance?

• Decreasing store traffic

• Reducing income group

• Opening more stores

• Lower sales orders