Costco Wholesale Corp (COST) stock has bounced back from recent lows. It is now trading at $979.29, up +12.13% from $873.35 last month. Analysts suggest the stock could be worth over $1,038 per share based on strong free cash flow. However, potential downside risk remains ahead of earnings on March 5.

Options plays on COST stock have yielded positive returns. In-the-money calls and shorting out-of-the-money calls have both been successful strategies. However, with the stock potentially nearing a peak, selling short out-of-the-money puts and calls could be a more conservative play. These strategies offer income and downside protection, making them worth considering in the current market environment.

Read more at Barchart: Costco Stock Has Moved Up Over the Last Month