COST Earnings on deck

COST earnings are on deck today.

I've been trading LEAPS on COST with stellar results in the last 2 months.

The last earnings call on COST showed that sales were down from the previous quarter and the silly algos that trade for institutional investors sold COST off and created a heavy dip.

The high was $786 and  it dipped all the way down to $718.

Why do I say it was silly of the algos to sell off on lower earnings?

Well, because this was the earnings period directly following the holiday retail quarter. That quarter is usually lower. It would be surpring if it were not lower, and it's not reason to sell, IMO.

Algos don't know this and they make mistakes. When they make them, I jump on it.

On the dip I was able to by 4 LEAPS and sell out at various returns. All of the returns were 40% and some were as high as 65%! The profits on these for LEAPS were about $17,500.