Why Retail Traders Don't Play Costco Earning Reports

Options on stocks priced in the $1,000 per share price range with two trading days of life left in them are bombs waiting to be exploded. That's why retail traders can't trade them. That plus they are expensive. Earnings are coming today after the closing bell. Here is how things are set up to go before Thurday's opening. First it's five day chart.

Now it's 1,000 series of Calls and Puts. Notice the low volumes of trading and the low open interest numbers.

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Now look at this action. The Calls sank on the opening and the Puts charged upwards. Here first are how the Calls traded.

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754 contracts traded in the Calls. Now the Puts.

Only 61 Put contracts traded on the day. Here is a more detailed look at the same thing.

So the Puts that closed at $1,388.00 yesterday hit a high of $2,638.00 just after today's opening. Maybe it's the high cost of the options which are keeping retail traders away but that doesn't explain why institutional trading isn't catching this action. There was time just after the opening to buy in. Now this. Earnings came out after the market closed and they were in line with what was expected.

Here is a look at the five day Costco chart.

The chart now has the potential to turn into a saucer formation however it's to high of a risk to play. That plus next week's six trading day away options are to expensive to buy. One week out options on stocks in the $1,000.00 range are always expensive. Here is what the DJIA did on the day.

On to something different.