Investors with a lot of money to spend have taken a bearish stance on Chewy CHWY.
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 CHWY, 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 10 uncommon options trades for Chewy.
This isn't normal.
The overall sentiment of these big-money traders is split between 40% bullish and 60%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $397,977, and 3 are calls, for a total amount of $219,171.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $7.0 to $30.0 for Chewy over the last 3 months.
Volume & Open Interest Trends
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 Chewy'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 Chewy's whale activity within a strike price range from $7.0 to $30.0 in the last 30 days.
Chewy Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CHWY | CALL | SWEEP | BULLISH | 05/17/24 | $5.0 | $4.85 | $4.98 | $11.00 | $124.9K | 7 | 250 |
| CHWY | PUT | TRADE | BULLISH | 05/17/24 | $0.39 | $0.38 | $0.38 | $15.50 | $106.2K | 2.6K | 7.7K |
| CHWY | PUT | TRADE | BEARISH | 01/17/25 | $14.25 | $14.2 | $14.25 | $30.00 | $71.2K | 1.9K | 50 |
| CHWY | PUT | SWEEP | BEARISH | 05/17/24 | $0.36 | $0.35 | $0.36 | $15.50 | $68.9K | 2.6K | 3.9K |
| CHWY | CALL | SWEEP | BEARISH | 06/21/24 | $1.02 | $0.84 | $0.99 | $17.50 | $68.2K | 8.8K | 61 |
About Chewy
Chewy is the largest e-commerce pet care retailer in the US, generating $11.2 billion in 2023 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a stand-alone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.
Following our analysis of the options activities associated with Chewy, we pivot to a closer look at the company's own performance.
Present Market Standing of Chewy
- With a volume of 4,230,759, the price of CHWY is up 4.76% at $16.18.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 20 days.
What Analysts Are Saying About Chewy
In the last month, 2 experts released ratings on this stock with an average target price of $16.0.
- Consistent in their evaluation, an analyst from Piper Sandler keeps a Neutral rating on Chewy with a target price of $16.
- An analyst from Citigroup has decided to maintain their Neutral rating on Chewy, which currently sits at a price target of $16.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Chewy options trades with real-time alerts from Benzinga Pro.
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