Deep-pocketed investors have adopted a bullish 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 56 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 41% leaning bullish and 35% bearish. Among these notable options, 10 are puts, totaling $2,147,980, and 46 are calls, amounting to $3,694,062.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $485.0 to $1260.0 for Costco Wholesale 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 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 activity within a strike price range from $485.0 to $1260.0 in the last 30 days.
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 | PUT | TRADE | BEARISH | 12/20/24 | $64.9 | $62.6 | $64.5 | $920.00 | $1.6M | 31 | 0 |
| COST | CALL | SWEEP | BULLISH | 08/09/24 | $29.3 | $25.25 | $29.3 | $870.00 | $732.5K | 64 | 0 |
| COST | CALL | SWEEP | BEARISH | 08/16/24 | $72.8 | $71.85 | $72.8 | $820.00 | $728.0K | 216 | 20 |
| COST | CALL | SWEEP | BULLISH | 08/16/24 | $303.75 | $302.6 | $303.75 | $580.00 | $182.2K | 0 | 68 |
| COST | CALL | TRADE | NEUTRAL | 10/18/24 | $47.35 | $46.7 | $46.98 | $880.00 | $150.3K | 152 | 7 |
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 enjoys 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.
Current Position of Costco Wholesale
- With a volume of 509,689, the price of COST is down -0.5% at $881.2.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 78 days.
Professional Analyst Ratings for Costco Wholesale
In the last month, 5 experts released ratings on this stock with an average target price of $921.0.
- An analyst from Tigress Financial persists with their Buy rating on Costco Wholesale, maintaining a target price of $975.
- An analyst from Evercore ISI Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $890.
- An analyst from Loop Capital has decided to maintain their Buy rating on Costco Wholesale, which currently sits at a price target of $940.
- Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $900.
- An analyst from Stifel has decided to maintain their Buy rating on Costco Wholesale, which currently sits at a price target of $900.
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 Costco Wholesale options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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