Deep-pocketed investors have adopted a bearish approach towards Costco Wholesale COST, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in COST usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for Costco Wholesale. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 25% leaning bullish and 50% bearish. Among these notable options, 4 are puts, totaling $112,580, and 4 are calls, amounting to $131,642.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $735.0 to $1000.0 for Costco Wholesale over the recent three months.
Insights into Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Costco Wholesale's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Costco Wholesale's significant trades, within a strike price range of $735.0 to $1000.0, over the past month.
Costco Wholesale Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | CALL | TRADE | BEARISH | 01/17/25 | $108.0 | $103.3 | $105.08 | $755.00 | $42.0K | 202 | 1 |
| COST | CALL | TRADE | BULLISH | 06/20/25 | $33.1 | $28.75 | $31.7 | $1000.00 | $31.7K | 59 | 10 |
| COST | PUT | TRADE | BEARISH | 05/31/24 | $10.5 | $9.6 | $10.5 | $795.00 | $31.5K | 447 | 1 |
| COST | CALL | TRADE | BEARISH | 01/16/26 | $159.2 | $156.8 | $156.8 | $760.00 | $31.3K | 47 | 2 |
| COST | PUT | TRADE | BEARISH | 07/19/24 | $20.3 | $19.8 | $20.1 | $800.00 | $28.1K | 232 | 24 |
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 over 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 UK.
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
Where Is Costco Wholesale Standing Right Now?
- With a volume of 241,651, the price of COST is down -0.12% at $812.17.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 1 days.
Expert Opinions on Costco Wholesale
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $834.0.
- Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $800.
- An analyst from Oppenheimer has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $850.
- Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $800.
- An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $820.
- Consistent in their evaluation, an analyst from Argus Research keeps a Buy rating on Costco Wholesale with a target price of $900.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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