Spotlight on Costco Wholesale: Analyzing the Surge in Options Activity

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 20 trades.

If we consider the specifics of each trade, it is accurate to state that 45% of the investors opened trades with bullish expectations and 55% with bearish.

From the overall spotted trades, 5 are puts, for a total amount of $311,976 and 15, calls, for a total amount of $683,983.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $265.0 to $785.0 for Costco Wholesale over the recent three months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Costco Wholesale options trades today is 154.67 with a total volume of 271.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Costco Wholesale's big money trades within a strike price range of $265.0 to $785.0 over the last 30 days.

Costco Wholesale Option Activity Analysis: Last 30 Days

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.

Following our analysis of the options activities associated with Costco Wholesale, we pivot to a closer look at the company's own performance.

Where Is Costco Wholesale Standing Right Now?

• Currently trading with a volume of 419,196, the COST's price is down by -0.13%, now at $730.62.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 65 days.

Professional Analyst Ratings for Costco Wholesale

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $805.0.

• An analyst from BMO Capital has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $800.
• An analyst from Oppenheimer has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $805.
• An analyst from Baird persists with their Outperform rating on Costco Wholesale, maintaining a target price of $850.
• An analyst from Barclays persists with their Equal-Weight rating on Costco Wholesale, maintaining a target price of $700.
• An analyst from Tigress Financial persists with their Buy rating on Costco Wholesale, maintaining a target price of $870.

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.