Traders make bullish bets on Costco, but there could be downside risks brewing

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Traders make bullish bets on Costco, but there could be downside risks brewing
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Traders make bullish bets on Costco, but there could be downside risks brewing $COST (via OptionsAction)

The wholesale giant's stock got a wave of bullish bets in Wednesday's trading session as options traders put money on their positive outlook for the company's earnings report, scheduled for after Thursday's closing bell.

"Obviously, the stock has been a massive outperformer. It's up 40% on the year," Dan Nathan, co-founder and editor of RiskReversal.com, said Wednesday on CNBC's"The company's doing really well, expected to post 14% year-over-year earnings growth this year," Nathan said. "But [that's] set to decelerate next year."

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