Decoding Dollar Tree's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bearish 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 31 uncommon options trades for Dollar Tree.

This isn't normal.

The overall sentiment of these big-money traders is split between 41% bullish and 48%, bearish.

Out of all of the special options we uncovered, 17 are puts, for a total amount of $912,179, and 14 are calls, for a total amount of $3,653,382.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $65.0 to $110.0 for Dollar Tree over the last 3 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 $65.0 to $110.0 in the last 30 days.

Dollar Tree Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Dollar Tree

Dollar Tree operates discount stores across the United States and Canada, with over 8,600 shops under its namesake banner and nearly 7,800 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.

Following our analysis of the options activities associated with Dollar Tree, we pivot to a closer look at the company's own performance.

Current Position of Dollar Tree

• With a volume of 3,255,823, the price of DLTR is up 0.73% at $73.34.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 1 days.

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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.