Behind the Scenes of Chewy's Latest Options Trends
Investors with a lot of money to spend have taken a bearish stance on Chewy (NYSE:CHWY).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with CHWY, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 11 uncommon options trades for Chewy.
This isn't normal.
The overall sentiment of these big-money traders is split between 18% bullish and 72%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $1,667,226, and 5 are calls, for a total amount of $916,381.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $16.5 to $37.5 for Chewy during the past quarter.
Insights into Volume & Open Interest
In today's trading context, the average open interest for options of Chewy stands at 2053.0, with a total volume reaching 261.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Chewy, situated within the strike price corridor from $16.5 to $37.5, throughout the last 30 days.
Chewy Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CHWY | PUT | TRADE | BEARISH | 09/20/24 | $2.0 | $1.93 | $1.99 | $22.50 | $995.0K | 2.7K | 23 |
| CHWY | CALL | TRADE | BULLISH | 01/17/25 | $3.55 | $3.5 | $3.55 | $32.50 | $763.2K | 787 | 87 |
| CHWY | PUT | SWEEP | BEARISH | 10/18/24 | $2.62 | $2.39 | $2.62 | $22.50 | $277.2K | 2.8K | 0 |
| CHWY | PUT | SWEEP | BEARISH | 01/17/25 | $4.95 | $4.9 | $4.95 | $25.00 | $247.5K | 5.5K | 0 |
| CHWY | PUT | SWEEP | BEARISH | 10/18/24 | $2.62 | $2.61 | $2.62 | $22.50 | $80.5K | 2.8K | 0 |
About Chewy
Chewy is the largest e-commerce pet care retailer in the US, generating $11.2 billion in 2023 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a stand-alone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.
Following our analysis of the options activities associated with Chewy, we pivot to a closer look at the company's own performance.
Where Is Chewy Standing Right Now?
- With a volume of 4,684,568, the price of CHWY is down -1.86% at $24.52.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 51 days.
What The Experts Say On Chewy
3 market experts have recently issued ratings for this stock, with a consensus target price of $29.0.
- Maintaining their stance, an analyst from Guggenheim continues to hold a Buy rating for Chewy, targeting a price of $32.
- Maintaining their stance, an analyst from Mizuho continues to hold a Neutral rating for Chewy, targeting a price of $20.
- An analyst from Wedbush has decided to maintain their Outperform rating on Chewy, which currently sits at a price target of $35.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Chewy, Benzinga Pro gives you real-time options trades alerts.