Costco (COST) earnings report indicated $3.04 in EPS and $52.6B in revenue, beating estimates. Telsey Advisory maintains an outperform rating on the COST stock with a lowered price target. "Costco is benefitting from high member loyalty and good execution in a tough retail environment," says Joe Feldman. Telsey Advisory also maintains an outperform rating on the Dollar Tree (DLTR) stock. "Dollar Tree is encouraged by strong sales following the rollout of a higher base point. The company is proactively making structural investments in associates, customer experience, and technology," Feldman adds. Next, Tom White discusses an example call diagonal option spread with a bullish direction on COST and an example call option spread with a bullish direction on DLTR.