Unpacking the Latest Options Trading Trends in Dollar Tree

Investors with a lot of money to spend have taken a bullish stance on Dollar Tree DLTR.

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 DLTR, 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 8 uncommon options trades for Dollar Tree.

This isn't normal.

The overall sentiment of these big-money traders is split between 75% bullish and 12%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $464,500, and 4 are calls, for a total amount of $179,039.

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 $100.0 to $115.0 for Dollar Tree over the last 3 months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Dollar Tree's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Dollar Tree's substantial trades, within a strike price spectrum from $100.0 to $115.0 over the preceding 30 days.

Dollar Tree 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

About Dollar Tree

Dollar Tree operates discount stores across the United States and Canada, with over 8,500 shops under its namesake banner and nearly 7,900 under Family Dollar. About 47% of Dollar Tree's sales in fiscal 2023 were composed of consumables (including food, health and beauty, and cleaning products), around 45% from variety items (including toys and homewares), and over 5% from seasonal items. The Dollar Tree banner sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. Conversely, Family Dollar primarily sells consumable merchandise (80% of the banner's sales) at prices below $10. About two-thirds of Family Dollar's stores are located in urban and suburban markets, with the remaining one-third located in rural areas.

Where Is Dollar Tree Standing Right Now?

• Trading volume stands at 1,525,336, with DLTR's price up by 3.72%, positioned at $106.29.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 42 days.

What Analysts Are Saying About Dollar Tree

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $146.0.

• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a In-Line rating on Dollar Tree with a target price of $137.
• Maintaining their stance, an analyst from UBS continues to hold a Buy rating for Dollar Tree, targeting a price of $155.

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 Dollar Tree with Benzinga Pro for real-time alerts.