Options Insight: How to Play Costco Ahead of Earnings

The video discusses the potential impact of the US election on the stock market and the Mexican peso, highlighting the uncertainty and volatility expected around the FOMC meetings. It also analyzes Costco's earnings, comparing them to Nike's performance, and discusses investment strategies, particularly options trading, in light of market conditions.

What is the primary reason for the expected increase in market volatility as discussed in the first section?

• The introduction of new technology in the market

• A sudden drop in oil prices

• The upcoming holiday season

• The uncertainty surrounding the election

How does the FOMC's decision impact the market according to the second section?

• It only affects the technology sector

• It creates uncertainty until a clear direction is established

• It has no effect on the market

• It stabilizes the market immediately

What factor could potentially calm the market uncertainties related to the election?

• An increase in consumer spending

• A decrease in interest rates

• A clear lead in the polls by one candidate

• A rise in global oil prices

What is the main focus for Costco's future performance as discussed in the third section?

• Competitor analysis

• Future projections and ambitious numbers

• Current stock price

• Past earnings performance

What strategy is suggested for managing risk with Costco's stock?

• Selling the at-the-money call and buying a higher call

• Holding cash reserves

• Buying more shares

• Investing in bonds