The Trap On Costco With One Day To Go "Call" Options
Let's start by saying it's 3:00 p.m. on Thursday and I am going to talk about the big sell off that Costco experienced this morning. The news that seemed to take some time to be disceminated. Yet it turned out to be "regular-stuff kind" of news like last month's food sales. Everyone listening to this news has an opinion of whatever the outcome happens to be. For most people this news is only background noise. Costco releases news like this often. Sometimes shareholder get all stressed out hearing any news of any kind and just bail. In the market there are always sharks waiting to bite on the lower prices. In the early few minutes of trading the average retail trader had no knowledge of what this news was all about. Opening markets started falling quickly. That sometimes happens. Does an instinct kick and say let's jump back in looking for a rebound. One problem is that if you jump in two early the value of your intial investment could drop in half in only 15...