Costco will report earnings after the close Thursday, Dec. 14
Costco Wholesale Corp (NASDAQ:COST) stock is trading at 52-week highs today, hitting $625.03 at its peak, after Deutsche Bank and Bernstein lifted their price targets to $697 and $660, respectively. COST is fresh off six-straight weekly wins ahead of the company's upcoming earnings report, due out after the close on Thursday, Dec. 14.
The stock recently overcame pressure at the $600 level, which provided a ceiling through November, with help from its 20-day moving average. Since the start of the year, the shares are up 36.8%.
COST closed higher after its last two earnings reports, and five out of the last eight. Over the past two years, the equity has averaged a next-day swing of 2.8%, regardless of direction, which is less than the 4.4% move the options pits are pricing in this time around.
When weighing in on the outperforming discount retail name, options look like a good way to go. The security is seeing attractively priced premium at the moment, per its Schaeffer's Volatility Index (SVI) of 18% ranks in the low 17th percentile of its annual range.