Looking At Costco Wholesale's Recent Unusual Options Activity
High-rolling investors have positioned themselves bullish on Costco Wholesale (NASDAQ:COST), and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in COST often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 8 options trades for Costco Wholesale. This is not a typical pattern.
The sentiment among these major traders is split, with 50% bullish and 25% bearish. Among all the options we identified, there was one put, amounting to $39,100, and 7 calls, totaling $255,519.
Predicted Price Range
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $765.0 to $870.0 for Costco Wholesale during the past quarter.
Volume & Open Interest Trends
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Costco Wholesale's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Costco Wholesale's substantial trades, within a strike price spectrum from $765.0 to $870.0 over the preceding 30 days.
Costco Wholesale 30-Day Option Volume & Interest Snapshot
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | CALL | TRADE | NEUTRAL | 08/16/24 | $55.6 | $53.25 | $54.44 | $825.00 | $48.9K | 51 | 0 |
| COST | CALL | TRADE | NEUTRAL | 08/16/24 | $47.35 | $45.6 | $46.47 | $835.00 | $41.8K | 184 | 0 |
| COST | PUT | TRADE | BULLISH | 08/16/24 | $20.85 | $19.55 | $19.55 | $865.00 | $39.1K | 130 | 0 |
| COST | CALL | SWEEP | BULLISH | 07/12/24 | $7.5 | $7.25 | $7.5 | $870.00 | $37.5K | 412 | 76 |
| COST | CALL | SWEEP | BEARISH | 07/19/24 | $71.2 | $70.0 | $70.0 | $800.00 | $35.0K | 1.2K | 0 |
About Costco Wholesale
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates over 600 warehouses in the United States and enjoys over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.
Having examined the options trading patterns of Costco Wholesale, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Present Market Standing of Costco Wholesale
- Trading volume stands at 169,858, with COST's price up by 0.88%, positioned at $870.25.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 81 days.
Professional Analyst Ratings for Costco Wholesale
5 market experts have recently issued ratings for this stock, with a consensus target price of $924.0.
- Maintaining their stance, an analyst from Tigress Financial continues to hold a Buy rating for Costco Wholesale, targeting a price of $975.
- An analyst from Oppenheimer has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $905.
- An analyst from Stifel persists with their Buy rating on Costco Wholesale, maintaining a target price of $900.
- Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $900.
- Maintaining their stance, an analyst from Loop Capital continues to hold a Buy rating for Costco Wholesale, targeting a price of $940.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Costco Wholesale with Benzinga Pro for real-time alerts.