Investors with a lot of money to spend have taken a bearish stance on Costco Wholesale COST.
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 COST, 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 Costco Wholesale.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 37%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $58,860, and 6 are calls, for a total amount of $349,908.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $495.0 to $990.0 for Costco Wholesale during the past quarter.
Volume & Open Interest Trends
In terms of liquidity and interest, the mean open interest for Costco Wholesale options trades today is 276.83 with a total volume of 99.00.
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 $495.0 to $990.0 over the last 30 days.
Costco Wholesale Option Volume And Open Interest Over 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | CALL | SWEEP | BULLISH | 10/11/24 | $12.1 | $11.65 | $12.1 | $880.00 | $121.0K | 500 | 40 |
| COST | CALL | TRADE | BEARISH | 01/17/25 | $53.05 | $51.65 | $51.65 | $880.00 | $67.1K | 426 | 13 |
| COST | CALL | SWEEP | NEUTRAL | 10/18/24 | $12.35 | $10.6 | $11.51 | $890.00 | $48.0K | 717 | 42 |
| COST | CALL | TRADE | NEUTRAL | 01/16/26 | $419.0 | $410.0 | $414.5 | $495.00 | $41.4K | 17 | 1 |
| COST | CALL | TRADE | NEUTRAL | 01/15/27 | $395.95 | $387.0 | $391.45 | $540.00 | $39.1K | 0 | 1 |
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.
Following our analysis of the options activities associated with Costco Wholesale, we pivot to a closer look at the company's own performance.
Where Is Costco Wholesale Standing Right Now?
- Trading volume stands at 146,507, with COST's price up by 0.69%, positioned at $881.67.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 69 days.
Professional Analyst Ratings for Costco Wholesale
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $939.6.
Turn $1000 into $1270 in just 20 days?
20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Maintaining their stance, an analyst from Telsey Advisory Group continues to hold a Outperform rating for Costco Wholesale, targeting a price of $1000. * In a cautious move, an analyst from Truist Securities downgraded its rating to Hold, setting a price target of $873. * Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Costco Wholesale with a target price of $925. * Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Costco Wholesale with a target price of $950. * Reflecting concerns, an analyst from Melius Research lowers its rating to Hold with a new price target of $950.
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 Costco Wholesale with Benzinga Pro for real-time alerts.
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