Leverage Costco Stock with Options

Leverage Costcos Potential Upside: A Strategic Options PlayThis podcast episode explores a smart investment strategy for Costco stock, currently trading around $870 per share. Analysts predict a potential 18% increase to $1031. Instead of buying shares outright, consider purchasing in-the-money call options expiring January 15, 2027, with an $850 strike for approximately $111 each. This allows you to control 100 shares for over a year with just $11,000, offering downside protection and significant upside if the stock hits the target.To further reduce costs, sell short out-of-the-money calls each month, such as the January 30, 2026, $915 call for $6.38. This generates instant income of about 0.7% monthly, or over $7,600 annually. Similarly, sell short out-of-the-money puts like the January 30, 2026, $830 strike at $5.28 for another 0.6% monthly yield, adding up to over $6,000 annually. Together, these strategies could cover your long call cost entirely.However, risks are involved: if the stock drops below $830, you might face a loss, and surging stocks could hurt short call positions. Careful strike picks and monitoring are essential for this leveraged strategy, which aims to capitalize on Costcos potential upside. Checkout Solipillow.comThe Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.