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 51 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 58% leaning bullish and 27% bearish. Among these notable options, 12 are puts, totaling $632,309, and 39 are calls, amounting to $1,803,267.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $335.0 to $1040.0 for Costco Wholesale over the recent three months.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Costco Wholesale options trades today is 335.42 with a total volume of 1,816.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Costco Wholesale's big money trades within a strike price range of $335.0 to $1040.0 over the last 30 days.
Costco Wholesale Call and Put Volume: 30-Day Overview
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | PUT | SWEEP | BULLISH | 09/20/24 | $42.35 | $40.0 | $40.0 | $920.00 | $160.0K | 129 | 40 |
| COST | CALL | TRADE | NEUTRAL | 10/18/24 | $36.8 | $35.95 | $36.39 | $885.00 | $145.5K | 293 | 41 |
| COST | PUT | SWEEP | BULLISH | 09/20/24 | $40.05 | $40.0 | $40.0 | $920.00 | $112.0K | 129 | 0 |
| COST | CALL | TRADE | NEUTRAL | 04/17/25 | $90.65 | $89.05 | $89.9 | $880.00 | $107.8K | 12 | 12 |
| COST | CALL | TRADE | BULLISH | 09/20/24 | $17.6 | $17.2 | $17.44 | $890.00 | $104.6K | 862 | 120 |
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.
After a thorough review of the options trading surrounding Costco Wholesale, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Where Is Costco Wholesale Standing Right Now?
- Trading volume stands at 1,002,725, with COST's price up by 1.71%, positioned at $891.63.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 17 days.
Professional Analyst Ratings for Costco Wholesale
In the last month, 5 experts released ratings on this stock with an average target price of $910.0.
- Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Costco Wholesale with a target price of $950.
- An analyst from DA Davidson has decided to maintain their Neutral rating on Costco Wholesale, which currently sits at a price target of $780.
- An analyst from Oppenheimer has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $955.
- An analyst from Stifel persists with their Buy rating on Costco Wholesale, maintaining a target price of $915.
- Maintaining their stance, an analyst from BMO Capital continues to hold a Outperform rating for Costco Wholesale, targeting a price of $950.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Costco Wholesale, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
