Chewy Options Trading: A Deep Dive into Market Sentiment - Chewy (NYSE:CHWY)

Investors with a lot of money to spend have taken a bullish stance on Chewy (NYSE:CHWY).

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 CHWY, 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 Chewy.

This isn't normal.

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

Out of all of the special options we uncovered, 6 are puts, for a total amount of $273,265, and 7 are calls, for a total amount of $321,825.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $17.5 to $55.0 for Chewy over the recent three months.

Analyzing 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 Chewy'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 Chewy's whale activity within a strike price range from $17.5 to $55.0 in the last 30 days.

Chewy Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
CHWY	CALL	TRADE	BULLISH	09/13/24	$0.38	$0.33	$0.38	$27.50	$142.5K	108	3.8K
CHWY	PUT	SWEEP	BULLISH	09/06/24	$3.55	$3.25	$3.25	$29.00	$88.7K	926	401
CHWY	PUT	SWEEP	BULLISH	09/20/24	$3.65	$3.55	$3.55	$30.00	$51.1K	1.0K	154
CHWY	PUT	SWEEP	BEARISH	10/18/24	$1.52	$1.42	$1.52	$25.00	$45.6K	7.1K	320
CHWY	CALL	SWEEP	NEUTRAL	01/17/25	$7.25	$7.1	$7.16	$20.00	$38.0K	3.7K	389

About Chewy

Chewy is the largest e-commerce pet care retailer in the US, generating $11.2 billion in 2023 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a stand-alone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.

After a thorough review of the options trading surrounding Chewy, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Chewy

With a trading volume of 5,542,571, the price of CHWY is down by -5.22%, reaching $25.73.
Current RSI values indicate that the stock is may be approaching overbought.
Next earnings report is scheduled for 90 days from now.

What The Experts Say On Chewy

5 market experts have recently issued ratings for this stock, with a consensus target price of $27.2.

An analyst from JP Morgan has decided to maintain their Overweight rating on Chewy, which currently sits at a price target of $33.
An analyst from Evercore ISI Group persists with their In-Line rating on Chewy, maintaining a target price of $29.
Consistent in their evaluation, an analyst from UBS keeps a Neutral rating on Chewy with a target price of $30.
Consistent in their evaluation, an analyst from B of A Securities keeps a Underperform rating on Chewy with a target price of $20.
Consistent in their evaluation, an analyst from B of A Securities keeps a Underperform rating on Chewy with a target price of $24.

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 Chewy options trades with real-time alerts from Benzinga Pro.

CHWYChewy Inc

$20.080.75%

Overview

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