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TD Ameritrade's Managing Director Previews Costco's Q2 Results

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Costco Wholesale Corporation (NASDAQ: COST) is scheduled to report its second quarter results on Thursday before market open.

Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan said that from a historical volatility percentile, Costco is trading in the 84th percentile.

"We are seeing a lot really low volatilities right now, so it is kind of interesting when you see a stock that sticks out being so high," Kinahan told Benzinga. Kinahan added that based on options pricing, he is expecting a move of around $3.06, or around 2 percent in either direction following the quarterly results.

Kinahan noted that shares of Costco have been weak since announcing its new deal with Visa. He also added that he observed some sellers in the monthly (March) $150 calls as well as sellers active on the weekly $150 calls.

Shares of Costco traded recently at $146.19.

Jayson Derrick and Brianna Valleskey contributed to this report.

Latest Ratings for COST

Oct 2016Northcoast ResearchUpgradesNeutralBuy
Oct 2016Wells FargoInitiates Coverage OnMarket Perform
Sep 2016CitigroupMaintainsNeutral

View More Analyst Ratings for COST
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