Decoding Costco Wholesale's Options Activity: What's the Big Picture?

Whales with a lot of money to spend have taken a noticeably bearish stance on Costco Wholesale.

Looking at options history for Costco Wholesale COST we detected 11 trades.

If we consider the specifics of each trade, it is accurate to state that 36% of the investors opened trades with bullish expectations and 63% with bearish.

From the overall spotted trades, 4 are puts, for a total amount of $439,867 and 7, calls, for a total amount of $243,044.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $635.0 and $825.0 for Costco Wholesale, spanning the last three months.

Volume & Open Interest Trends

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $635.0 to $825.0 in the last 30 days.

Costco Wholesale Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

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.

After a thorough review of the options trading surrounding Costco Wholesale, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Costco Wholesale

• With a volume of 202,596, the price of COST is down -0.85% at $716.25.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 16 days.

Professional Analyst Ratings for Costco Wholesale

5 market experts have recently issued ratings for this stock, with a consensus target price of $736.8.

• An analyst from Telsey Advisory Group has revised its rating downward to Outperform, adjusting the price target to $750.
• An analyst from Wells Fargo has decided to maintain their Equal-Weight rating on Costco Wholesale, which currently sits at a price target of $675.
• An analyst from Telsey Advisory Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $750.
• Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on Costco Wholesale with a target price of $749.
• Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for Costco Wholesale, targeting a price of $760.

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.