Costco Wholesale Corp stock is undervalued, trading at $870.32 on Dec. 29. Long-term call options offer a cheaper way to gain exposure to the stock. For example, the Jan. 15, 2027, $850 strike price call option costs $111.03, providing an expected return of 63% if the stock reaches $1,031. Shorting OTM calls and puts can further reduce investment costs and provide income, but comes with risks. The strategy offers a leveraged upside play on Costco stock.

Read more at Barchart: A Less-Costly Way to Buy Costco to Gain Leveraged Upside in COST Stock