Costco Wholesale's Options Frenzy: What You Need to Know

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 19 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, 7 are puts, for a total amount of $537,452 and 12, calls, for a total amount of $1,326,156.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $685.0 to $800.0 for Costco Wholesale over the last 3 months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Costco Wholesale stands at 399.07, with a total volume reaching 2,360.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Costco Wholesale, situated within the strike price corridor from $685.0 to $800.0, throughout the last 30 days.

Costco Wholesale 30-Day Option Volume & Interest Snapshot

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.

Current Position of Costco Wholesale

• Trading volume stands at 315,954, with COST's price down by -0.13%, positioned at $730.0.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 58 days.

Expert Opinions on Costco Wholesale

5 market experts have recently issued ratings for this stock, with a consensus target price of $794.0.

• An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $815.
• Maintaining their stance, an analyst from Telsey Advisory Group continues to hold a Outperform rating for Costco Wholesale, targeting a price of $785.
• Consistent in their evaluation, an analyst from Tigress Financial keeps a Buy rating on Costco Wholesale with a target price of $870.
• An analyst from Barclays persists with their Equal-Weight rating on Costco Wholesale, maintaining a target price of $700.
• Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Costco Wholesale with a target price of $800.

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 Costco Wholesale, Benzinga Pro gives you real-time options trades alerts.