COSTCO has a history of trading against the market. Often when the market is down, COST is up, and vice-versa. Consider this a divergence making for a better entry.
COST is bumping up against well know support pre/post inflation at around $540.
May same store sales are due out tomorrow afternoon, 7/6/2023 at 1:15pm PDT.
Based on COSTCO's mid-month mark downs of products and increases in discounting from their flyers to the online purchases, they are working to keep revenue numbers up as well as total sales numbers.
COSTCO has recently been checking cards/IDs/applications to ensure the person paying is the cardholder/executive member. I have experienced this in San Antonio, Kyle, and Austin Metroplex.
Bearish and Bullish entries
Bearish, $540/545 CALL CREDIT SPREAD, expecting a trend down after same store sales disappoint beyond the core numbers.
Bullish, $510/515 PUT CREDIT SPREAD, when the trend down begins, expect COST to have support at the $520 range, but look for spread entries at $5 strike lower for added security against broader market moves.
An Iron Condor is possible, but we aren't at a FIB50 for COSTCO, so a put spread would likely lose money as the stock price goes down, so avoid an IC and take spreads OTM as the mark moves.
LEGEND:
Large red arrow points to the last same store sales impact on stock, as well as the trend recovery. COST is generally bullish vs. bearish at this time, and the daily MA cross confirms.
Drawn red box near arrow, is the day the last same store sales results were posted.