Costco's unusual options activity presents income investors with strong opportunity.

Happy Fourth of July to all Barchart readers! This weekend, I discuss unusual options activity in one of my favorite stocks, Costco (COST). Despite low volume, two put options caught my eye for income investors. Both expire on Aug. 15, with strong volume-to-open-interest ratios.

Costco’s stock is a solid long-term investment, with consistent dividend growth. It raised its dividend for the 21st consecutive year in May 2025, boasting a 13% compound annual growth rate. Earnings have also seen steady growth, supporting the dividend increase trend.

Costco’s business model, with a focus on membership revenue, is a key driver of its success. The company’s wide moat and strong financials make it a standout in the retail industry. Its revenue mix, with membership fees accounting for a significant portion of net income, is a testament to its strength.

The $965 and $970 strike puts on Costco offer attractive premium income and annualized returns for income-focused investors. The $965 strike, with a 70.9% profit probability, stands out as a solid choice. The stock’s strong fundamentals and options activity present a compelling opportunity for savvy investors.

Read more at Yahoo Finance: Costco’s Unusual Options Activity Provides Income Investors With Good Opportunity