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Option Update: Costco volatility flat into lower EPS outlook on inflation

Costco (NASDAQ: COST) is recently trading at $66 in pre-open trading, below its close of $72.

COST said earnings for the fourth quarter are expected to be well below the consensus estimates because of a rise from inflation, particularly as to energy costs.

COST overall option implied volatility of 32 is near its 26-week average according to Track Data, suggesting non-directional movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Symbol Lookup
IndexesChangePrice
DJIA-143.288,599.18
NASDAQ-45.421,571.59
S&P 500-19.38890.35

Last updated: January 09, 2009: 07:52 PM

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