Options Insight: How to Play Costco

The video discusses the concept of witching day, where futures and options contracts expire, typically leading to increased market volatility. However, current market conditions show lower than expected volatility, possibly due to investor sentiment about the upcoming Fed decision, which is anticipated to result in no changes. The video also highlights a potential investment opportunity in Costco, based on technical analysis and upcoming earnings. An options strategy involving selling puts and buying calls is proposed to capitalize on this opportunity.

What is typically expected on a 'witching' day in the market?

• A decrease in trading volume

• An increase in market volatility

• A rise in stock prices

• A stable market with no changes

Why is the current market not showing the expected volatility?

• The Fed's decision is seen as a foregone conclusion

• The market is experiencing a stable period

• Investors are uncertain about the Fed's decision

• There is a high chance of interest rate changes

What is the current investor sentiment regarding the Fed's decision next week?

• High anticipation of a rate hike

• A foregone conclusion of no action

• Expectation of a rate cut

• Uncertainty and suspense

What technical level is considered a support for Costco's stock?

• 152

• 153

• 151

• 150

What is the investment strategy discussed for Costco?

• Buying a put and selling a call

• Selling a put and buying a call

• Buying both a put and a call

• Selling both a put and a call