David Bartosiak's Costco Trade

David Bartosiak of Zacks.com suggested on Bloomberg Markets that traders should consider a bearish options strategy in Costco Wholesale Corporation COST.

He thinks it isn't important for Costco to beat earnings expectation for the last quarter, because Wall Street is currently focused on guidance. He explained that Nike Inc NKE got crushed despite better than expected revenue and earnings per share. It got hurt because of weak future orders. Bartosiak added that Costco has very ambitious numbers for 2017 and he isn't sure that it's going to be able to deliver on those and the market might punish it a bit.

Bartosiak wants to sell the October 21, 150 strike and buy the October 21, 155 strike. The net credit and his maximal gain is $1.90 and he can maximally lose $3.10 if the stock jumps to $155.