COST

COSTCO WHOLESALE CORP-NEW (COST) reports earnings Thursday after the close. Consensus EPS estimate is $4.90.

The expected move of ±6.0% translates to roughly ±$63.04 from the current price of $1048.95. This defines the range the market is pricing in for the post-earnings reaction.

IV Rank is elevated at 76, indicating options premiums are pricing in a larger-than-usual move. This creates an edge for premium sellers — the IV crush after the event can be significant.

A short strangle with strikes beyond the ±6.0% expected move could capture the IV crush. This is a higher-risk play — consider defined-risk alternatives or strict position sizing.

Enter the position 1-2 days before earnings to capture the final IV ramp. Plan to close the morning after the report once IV collapses — don't hold hoping for further decay.

Consumer names can move on same-store sales, foot traffic data, inventory levels, and forward guidance on discretionary spending trends.