Buying COST call contracts.
Costco Wholesale (COST) should benefit from consumers looking for ways to beat inflation.
The club offers low prices on high-quality items. And many of its locations also offer low-price gasoline.
The company is overdue for a bump to its annual membership price. This kind of move would make sense in today’s inflationary market as most customers would stay and continue to pay the higher annual price.
(A membership price increase announcement could be a major catalyst for the stock).
Shares have rebounded sharply from the June lows. And a recent short-term pullback to support gives us a good entry point.