November 2026 Options Now Available For Costco Wholesale (COST)

Options ideas for Costco (COST, $873.52) highlighted a sell-to-open Nov 2026 $860 put (bid $59) that would reduce effective purchase price to $801 (before commissions), sits ~2% OTM, carries a 62% chance to expire worthless and would produce a 6.86% return on cash (7.36% annualized) if it does; alternatively a buy-and-sell covered-call at the Nov 2026 $940 strike (bid $63) offers a 14.82% total return if called, a ~8% upside strike, a 53% chance to expire worthless and a 7.21% premium boost (7.74% annualized). Implied vol is modestly elevated at 24–25% versus a 22% trailing 12‑month volatility, so these are yield-enhancing strategies that lower entry cost or generate income but carry assignment risk and cap upside; Stock Options Channel will track changing odds and contract history on its site.

Analysis

The put contract at the $860.00 strike carries a bid of $59.00; selling-to-open would reduce the effective purchase price to $801.00 (before commissions) versus the current stock price of $873.52 and sits roughly 2% out‑of‑the‑money. Stock Options Channel's analytics place the probability of the put expiring worthless at 62%, which would produce a 6.86% return on the cash commitment (7.36% annualized).

The $940.00 call has a $63.00 bid and, when sold as a covered call against shares purchased at $873.52, would cap upside at $940.00 and deliver a 14.82% total return if called at the November 2026 expiration. That call is about 8% out‑of‑the‑money and currently shows a 53% chance to expire worthless, implying a 7.21% premium boost to returns (7.74% annualized) if uncalled.

Implied volatility for the put and call sits at 24%–25% versus a trailing 12‑month realized volatility of 22%, indicating modestly elevated option pricing that favors yield enhancement but does not signal extreme volatility. These are income‑oriented, yield‑boost strategies that lower net entry or generate premium but carry assignment risk and cap upside; the vendor will track changing odds and greeks over time for monitoring and adjustment.

Key Decisions for Investors

• Consider selling the Nov‑2026 $860 put if your objective is to acquire COST at an effective $801 basis and you can reserve cash for potential assignment, given the 6.86% yield on commitment and 62% chance of expiry worthless
• If already long or willing to buy at current levels, consider selling the Nov‑2026 $940 covered call to capture the $63 premium and potentially lock in a 14.82% capped return while accepting the ~8% upside cap and 53% odds of expiry worthless
• Monitor implied versus realized volatility and the published odds/greeks on Stock Options Channel and be prepared to adjust or close positions if implied vol compresses materially or assignment risk increases
• Explicitly factor in broker commissions, dividend treatment, tax consequences and ensure position sizing leaves sufficient cash or margin for assignment rather than assuming the option will expire worthless