What the Options Market Tells Us About 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 13 uncommon options trades for Dollar Tree.

This isn't normal.

The overall sentiment of these big-money traders is split between 46% bullish and 38%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $612,698, and 7 are calls, for a total amount of $338,823.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $60.0 to $125.0 for Dollar Tree over the recent three months.

Insights into Volume & Open Interest

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 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 activity within a strike price range from $60.0 to $125.0 in the last 30 days.

Dollar Tree 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

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?

• With a trading volume of 1,823,078, the price of DLTR is down by -0.21%, reaching $84.61.
• Current RSI values indicate that the stock is may be oversold.
• Next earnings report is scheduled for 5 days from now.

Expert Opinions on Dollar Tree

In the last month, 1 experts released ratings on this stock with an average target price of $130.0.

• Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on Dollar Tree with a target price of $130.

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.