Investors with significant funds have taken a bearish position in Dollar Tree DLTR, a development that retail traders should be aware of.
This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in DLTR usually indicates foreknowledge of upcoming events.
Today, Benzinga's options scanner identified 9 options transactions for Dollar Tree. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 22% being bullish and 44% bearish. Of all the options we discovered, 8 are puts, valued at $603,284, and there was a single call, worth $25,189.
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 $98.0 to $115.0 for Dollar Tree over the last 3 months.
Insights into Volume & Open Interest
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Dollar Tree'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 Dollar Tree's whale trades within a strike price range from $98.0 to $115.0 in the last 30 days.
Dollar Tree Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| DLTR | PUT | SWEEP | BULLISH | 12/20/24 | $10.95 | $10.9 | $10.9 | $100.00 | $157.0K | 665 | 13 |
| DLTR | PUT | SWEEP | BULLISH | 12/20/24 | $11.15 | $10.95 | $10.95 | $100.00 | $116.0K | 665 | 263 |
| DLTR | PUT | SWEEP | NEUTRAL | 08/09/24 | $2.89 | $2.7 | $2.89 | $100.00 | $97.5K | 1.1K | 17 |
| DLTR | PUT | SWEEP | NEUTRAL | 08/16/24 | $2.49 | $2.48 | $2.49 | $98.00 | $66.1K | 255 | 280 |
| DLTR | PUT | SWEEP | BEARISH | 12/20/24 | $11.1 | $10.85 | $11.1 | $100.00 | $55.5K | 665 | 273 |
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.
After a thorough review of the options trading surrounding Dollar Tree, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Dollar Tree's Current Market Status
- Currently trading with a volume of 1,560,549, the DLTR's price is up by 0.23%, now at $99.98.
- RSI readings suggest the stock is currently may be approaching oversold.
- Anticipated earnings release is in 20 days.
Expert Opinions on Dollar Tree
2 market experts have recently issued ratings for this stock, with a consensus target price of $130.0.
- An analyst from JP Morgan has decided to maintain their Overweight rating on Dollar Tree, which currently sits at a price target of $148.
- In a cautious move, an analyst from Piper Sandler downgraded its rating to Neutral, setting a price target of $112.
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 Dollar Tree 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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