What the Options Market Tells Us About Costco Wholesale

Investors with a lot of money to spend have taken a bearish stance on Costco Wholesale COST.

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 COST, 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 28 uncommon options trades for Costco Wholesale.

This isn't normal.

The overall sentiment of these big-money traders is split between 39% bullish and 60%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $331,709, and 21 are calls, for a total amount of $1,039,522.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $395.0 and $840.0 for Costco Wholesale, spanning the last three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Costco Wholesale's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Costco Wholesale's whale activity within a strike price range from $395.0 to $840.0 in the last 30 days.

Costco Wholesale Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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 nearly 600 warehouses in the United States and boasts 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 U.K.

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

• With a volume of 1,373,267, the price of COST is down -1.26% at $677.84.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 35 days.

What Analysts Are Saying About Costco Wholesale

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $720.0.

• An analyst from Oppenheimer has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $695.
• An analyst from Tigress Financial persists with their Buy rating on Costco Wholesale, maintaining a target price of $745.

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.