Group 1 - A bear put spread is a vertical spread designed to profit from a decline in stock prices, characterized by a bearish directional bias and subject to time decay [1] - The maximum profit from a bear put spread is determined by the distance between the strike prices minus the premium paid, while the loss is limited to the premium paid [2] - The current market volatility suggests that incorporating bearish trades into an options portfolio may be beneficial [2] Group 2 - An example of a bear put spread on Meta Platforms (META) involves buying a $640 put and selling a $620 put, with a total cost of $1,250, which is also the maximum loss [5] - The maximum gain for the Meta trade is calculated as $750, derived from the difference between the strike prices and the premium paid [5] - The breakeven price for the Meta trade is $627.50, calculated by subtracting the premium from the long put strike [6] Group 3 - The Barchart Technical Opinion rating for META is 72% Sell, indicating a strong short-term outlook for maintaining the current downward direction [7] - Among 55 analysts following META, there are 44 Strong Buy, 3 Moderate Buy, and 8 Hold recommendations, suggesting a mixed sentiment [8] Group 4 - An example of a bear put spread on Oracle (ORCL) involves buying a $190 strike put and selling a $185 strike put, with a total cost of $330, which is also the maximum loss [10] - The maximum possible gain for the Oracle trade is $170, achievable if the stock closes below $190 at expiration [10] - The Barchart Technical Opinion rating for Oracle is 88% Sell, indicating a strong short-term outlook for maintaining the current downward direction [11]

Core Viewpoint - The article discusses the bear put spread strategy, which is designed to profit from a decline in stock prices, highlighting specific examples from Nvidia, Netflix, and Broadcom [1][2]. Group 1: Bear Put Spread Overview - A bear put spread is a vertical spread that profits from a stock's price decline, characterized by a bearish directional bias [1]. - The strategy involves buying an out-of-the-money put and selling a further out-of-the-money put, with maximum profit equal to the distance between the strikes minus the premium paid [2]. Group 2: Nvidia Example - The Nvidia bear put spread uses a March 20 expiry, involving buying the $200 put and selling the $195 put [3]. - The cost of the trade is $320, which is also the maximum loss, while the maximum gain is calculated as $180 [3]. - The breakeven price for this trade is $196.80 [4]. Group 3: Netflix Example - The Netflix bear put spread also uses a March 20 expiry, involving buying the $100 strike put and selling the $96 strike put [5][6]. - The cost of the trade is $265, which is the maximum loss, and the maximum possible gain is $135 [6]. Group 4: Broadcom Example - The Broadcom bear put spread uses a March 20 expiry, involving buying the $370 strike put and selling the $360 strike put [7][8]. - The cost of the trade is $700, which is the maximum loss, while the maximum possible gain is $300 [8].

Core Viewpoint - Boeing stock has experienced a decline, falling below its 50-day moving average due to a weak earnings report, indicating a bearish outlook for the stock [1][5]. Bear Put Spread Strategy - A bear put spread can be established for Boeing using the 190 strike as the long put and the 185 strike as the short put, with a cost of approximately $75 per contract and a maximum potential gain of $425 [2]. - To achieve maximum profit, Boeing stock needs to drop an additional 13.4% by the expiration date of December 19 [3]. - The breakeven point for this trade is calculated at 189.25, factoring in the $0.75 option premium per contract [3]. Risk and Loss Potential - If Boeing stock is above 190 at expiration, the entire spread will expire worthless, resulting in a total loss of $75 [4]. - A stop loss can be set at 50% of the premium paid, equating to a loss of around $40 [4]. - The initial delta of the trade is -4, indicating exposure similar to being short four shares of Boeing stock [4]. Performance Ratings - Boeing stock has a Composite Rating of 55 out of a possible 99, with an Earnings Per Share Rating of 42 and a Relative Strength Rating of 69, all of which are considered weak [5].

Core Insights - Costco Wholesale's stock has underperformed in 2023, down 1% year-to-date compared to a nearly 15% increase in the S&P 500 [1] - The company's third-quarter results showed earnings per share of $5.87 and revenue of $86.16 billion, both exceeding consensus estimates, but the market reaction was muted [2] - Membership fee income, a key profitability driver, rose 14% year-over-year, indicating strong customer loyalty despite a recent fee increase [3] - Concerns are growing regarding the impact of tariffs and whether Costco can sustain growth to justify its high price-to-earnings ratio of 51 [4] Options Strategy - Investors can consider a bear put spread by buying a 900-strike put option and selling an 880-strike put option, with a maximum loss of $700 if shares are above 900 at expiration [5][6] - The maximum profit from this strategy is $1,300 if shares trade below 880 at expiration [6] Performance Ratings - Costco has an IBD Composite Rating of 46, with shares trending lower and falling below both the 50- and 200-day moving averages [7] - The Relative Strength Rating of 24 indicates that Costco stock has outperformed less than 25% of stocks in the IBD database over the past year [7]