Costco Wholesale (COST - option chain) stock is trading lower today after the company announced its same-store sales rose 6.0 percent in November, missing analysts' forecasts of an 8.1 percent increase. While the fact that sales are up 6% is encouraging, November 2008 was when consumers were really cutting back, so a bigger increase would indicate that the company is back on solid footing. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on COST.

This morning, COST opened at $59.40. So far today the stock has hit a high of $59.57 and a low of $59.00. As of 11:15, COST is trading at $59.23, down $1.64 (-2.7%). The chart for COST looks neutral and S&P gives COST a neutral 3 STARS (out of 5) hold ranking.

Aeropostale (NYSE: ARO - option chain) stock is trading lower today after the company reported its same-store sales rose 3.0 percent in October, well below analysts' forecasts of 13.8 percent. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on GE.

This morning, ARO opened at $34.50. So far today the stock has hit a high of $37.27 and a low of $32.05. As of 11:55, ARO is trading at $32.68, down $5.35 (-14.1%). The chart for ARO looks bullish and S&P gives ARO a positive 4 STARS (out of 5) buy ranking.

BJ's Wholesale Club (NYSE: BJ - option chain) stock is trading lower today after the company reported its same-store sales slipped 0.5 percent in September. Analysts were expecting a 1 percent decline, but traders saw competitor, Costco (NASDAQ: COST) post a 1% rise in September same-store sales and wanted more from BJ. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BJ.

This morning, BJ opened at $35.90. So far today the stock has hit a high of $36.13 and a low of $35.90. As of 11:20, BJ is trading at $36.10, down 96 cents (-2.6%). The chart for BJ looks bullish and S&P gives BJ a positive 4 STARS (out of 5) buy ranking.

September same-store sales are rolling in this Thursday morning, and the news for the teen/tween retailers may hold some hope. Leading off the clothing genre is American Eagle Outfitters (NYSE: AEO), which posted perhaps the best news in the group. Of course, by best news I mean that AEO's sales didn't drop as much as people predicted.

The retailer had flat same-store sales in September, at the top end of its forecast range for a drop of 4.1% to flat sales. Thing is, these results will probably spur a bit of a rally for the stock, mainly because they weren't as bad as they could have been.

Walgreen (NYSE: WAG - option chain) shares are rising today after the company announced its September sales rose 10.3% higher than the same period last year. Same-store-sales were up 5.3%, buoyed by pharmacy increases of 7%, while other merchandise saw just a 2% gain. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WAG.

WAG opened this morning at $38.35. So far today the stock has hit a low of $37.92 and a new 52-week high of $38.75. As of 11:45, WAG is trading at $38.21 up 2 cents (0.05%). The chart for WAG looks neutral and S&P gives WAG a neutral 3 STARS (out of 5) hold ranking.

Abercrombie & Fitch (NYSE: ANF) announced on Thursday that its same-store sales plummeted 29% in August. These results were worse than the expected drop of 23.9%.

Sales in all of its divisions were worse than expected, with sales at the Abercrombie & Fitch flagship store plunging 26%. Sales dropped 32% at Hollister, 37% at Ruehl (which will close at the year's end), and 26% at the company's children's retail outlet.

American Eagle Outfitters (NYSE: AEO - option chain) shares are rising today after the company updated its Q2 EPS forecast to 16 cents, including a 2-cent tax benefit. AEO had previously forecast EPS of 12 to 15 cents, while analysts are expecting EPS of 14 cents. AEO also announced July same store sales that declined more than expected, but that news was offset for traders by the revised forecast. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on AEO.

AEO opened this morning at $14.50. So far today the stock has hit a low of $14.40 and a high of $14.95. As of 11:30, AEO is trading at $14.70 up 74 cents (5.3%). The chart for AEO looks neutral and S&P gives AEO a neutral 3 STARS (out of 5) hold ranking.

Target (NYSE: TGT - option chain) shares are rising today after the company said it expects its second-quarter profit to meet or beat analysts' forecasts, despite reporting June same store sales that fell 6.2% year-over-year. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on TGT.

TGT opened this morning at $38.96. So far today the stock has hit a low of $38.47 and a high of $39.30. As of 11:35, TGT is trading at $38.67 up $1.41 (3.8%). The chart for TGT looks bullish and S&P gives TGT a positive 4 STARS (out of 5) buy ranking.

Home Depot (NYSE: HD) reported its first quarter numbers today, topping Wall Street estimates, but cautioning that the company's business remains under pressure from the current housing crisis.

Ahead of today's earnings report, analysts had been expecting to see Home Depot, the nations largest home improvement retailer, show earnings of 29 cents per share for its first quarter, but the company surprised to the upside with 35 cents per share. Sounds like good news, but Wall Street has been selling the stock off so far in today's action.

Wal-Mart (NYSE: WMT), whose competitors include Target (NYSE: TGT) and Costco (NASDAQ: COST), reported same-store sales for the month of March. According to the press release, things are going pretty well at the retailer, given current economic conditions. Domestic comps over the nine-week frame rose 3.1% on an overall basis. Breaking that down to performance stats for Wal-Mart and Sam's Club on an individual basis, we see that the former increased its comps by 2.6% and that the latter improved its same-store sales by 6.1%. Over the five-week frame, comps weren't as good. They came in at 1.4%. Wal-Mart itself barely saw a move in the metric, rising 0.6%. Fear not, shareholders, for you have to consider the timing of the Easter holiday. It came early last year.

Now, international net sales didn't fare so well because of currency translations. If you decide to include that effect, then sales dipped well over 14% last month. Excluding currencies gives you a much more positive 7.8% increase. Can't really do much about currency issues right now. As we all know, all companies with international exposure have to face them. Nevertheless, I like Wal-Mart's comps. And I particularly like the performance at Sam's Club. A lot of consumers seem to be using the warehouse club to save money during the tough times. Wal-Mart's management is apparently reaching that shopper.

Urban Outfitters (NASDAQ: URBN - option chain) shares are headed higher today after the company announced this morning same-store sales that fell 1 percent in January and fourth-quarter same-store sales that rose 3 percent. With so many retail outlets showing declining sales, investors are responding favorably to any gains and even some moderate declines in sales. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on URBN.

Walgreen Co. (NYSE: WAG - option chain) shares have moved higher today after the company reported December sales that rose upwards of 10%, including a 4.9% gain in same store sales. In times like these, WAG stayed strong with sales of basic necessities, while seasonal items slumped, but the net result was positive. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WAG.

WAG opened this morning at $25.43. So far today the stock has hit a low of $25.43 and a high of $26.78. As of 12:15, WAG is trading at $26.80, up $1.25 (4.9%). The chart for WAG looks neutral and S&P gives WAG a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider an April bull-put credit spread below the $20 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just three and a half months as long as WAG is above $20 at April expiration. Walgreen would have to fall by more than 25% before we would start to lose money. Learn more about this type of trade here.

WAG hasn't been below $21 at all in the past year and has shown support around $22.50 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in WAG.

McDonald's (NYSE: MCD - option chain) shares opened higher today, but have dropped into the red after the company announced November same-store sales growth of 7.7%, with US sales growing 4.5%. However, total sales only grew 1.9% when currency factors were included. Without currency fluctuations, total sales would have been up just under 10%. I for one like this company a tremendous amount in a weak economy, and even though the strong dollar is messing with the numbers, I think MCD is on solid ground. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on MCD.

MCD opened this morning at $63.35. So far today the stock has hit a low of $60.86 and a high of $63.99. As of 12:15, MCD is trading at $61.37, down $1.35 (-2.1%). The chart for MCD looks bullish and S&P gives MCD a positive 5 STARS (out of 5) strong buy ranking.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just six weeks as long as MCD is above $50 at January expiration. McDonald's would have to fall by more than 18% before we would start to lose money. Learn more about this type of trade here.

MCD hasn't been below $50 at all except for one day in the past year and has shown support around $55 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent owns and controls bullish hedged positions in MCD.

The world has not been swayed by the coy laugh of organic vegetables, the winsome eyes of local produce, the sparkling personality of grass-fed beef. When money's tight, the world goes to McDonald's for a dollar burger, and maybe a splurge on Southern-style chicken, an opportunity to win big -- or small, that next package of French fries has to come from somewhere -- with the chain's traditional 'Monopoly' game. Same-store sales were up 8.2% worldwide, with a respectable 5.3% increase in U.S. outlets.

McDonald's Corporation (NYSE: MCD) is still struggling to gain Wall Street approval for many of its recent moves, such as expanding hours and diving head-first into competition with Starbucks, rolling out espresso bars and fancy blended coffee drinks into its U.S. stores. Given some rough numbers from Starbucks (NASDAQ: SBUX) out yesterday, it seems reasonable to wonder whether customers are avoiding the pricey pastries and coffee drinks at Starbucks and heading for the Dollar Menu at McDonald's.

Target (NYSE: TGT - option chain) shares are falling today after the company reported a 4.8 percent decline in October same-store sales this morning, worse than the 2.8 percent predicted by analysts. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on TGT.

This morning, TGT opened at $37.11. So far today the stock has hit a low of $36.74 and a high of $39.11. As of 12:25, TGT is trading at $36.77, down 98 cents (2.6%). The chart for TGT looks neutral and S&P gives TGT a 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider a November bear-call credit spread above the $45 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in two weeks as long as TGT is below $45 at November expiration. Target would have to rise by more than 22% before we would start to lose money. Learn more about this type of trade here.

TGT has been above $45 as recently as early October but has fallen sharply since and shown resistance around $42 over the past month.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in TGT.