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 27 uncommon options trades for Costco Wholesale.
This isn't normal.
The overall sentiment of these big-money traders is split between 33% bullish and 40%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $445,755, and 22 are calls, for a total amount of $1,784,033.
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 $335.0 to $1480.0 for Costco Wholesale during the past quarter.
Volume & Open Interest Development
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 Costco Wholesale'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 Costco Wholesale's whale activity within a strike price range from $335.0 to $1480.0 in the last 30 days.
Costco Wholesale 30-Day Option Volume & Interest Snapshot
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | CALL | TRADE | BULLISH | 01/16/26 | $145.45 | $141.8 | $144.6 | $960.00 | $723.0K | 519 | 52 |
| COST | PUT | TRADE | BEARISH | 01/16/26 | $483.3 | $477.1 | $481.54 | $1480.00 | $240.7K | 0 | 10 |
| COST | CALL | SWEEP | NEUTRAL | 01/16/26 | $40.45 | $39.7 | $39.7 | $1240.00 | $158.8K | 110 | 42 |
| COST | CALL | TRADE | NEUTRAL | 12/20/24 | $100.15 | $96.15 | $98.5 | $900.00 | $128.0K | 1.3K | 15 |
| COST | CALL | SWEEP | BULLISH | 12/13/24 | $0.93 | $0.9 | $0.93 | $1085.00 | $92.9K | 1.0K | 1.0K |
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 boasts 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.
Present Market Standing of Costco Wholesale
- With a volume of 301,151, the price of COST is up 0.21% at $996.75.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 0 days.
What Analysts Are Saying About Costco Wholesale
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $1044.0.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Stifel persists with their Buy rating on Costco Wholesale, maintaining a target price of $1000. * Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $1050. * An analyst from BMO Capital has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $1075. * Consistent in their evaluation, an analyst from Wells Fargo keeps a Equal-Weight rating on Costco Wholesale with a target price of $950. * An analyst from Jefferies persists with their Buy rating on Costco Wholesale, maintaining a target price of $1145.
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 Costco Wholesale options trades with real-time alerts from Benzinga Pro.
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