mediapro

Why I Like Costco

I'm interested in this strategy. For the uninformed of us, would you please explain a bit more?


On Feb 05 05:30 AM Paul Price wrote:

> I wrote [sold] CostCo Jan. 2011 $45 puts yesterday for $10.30/share.

>
>
> With 2 years to get the economy moving and a break-even price of
> $34.70 I think this represents a great entry point.
>
> At the price of $34.70 you'd be buying (if put) for under 12 times
> current earnings. Value Line sees $2.90 for this FY.
>
> A great price on a world-class company. All the people who loved
> this near $70 should be stocking up now, but of course, they won't.