Decoding Costco Wholesale's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish 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 48 uncommon options trades for Costco Wholesale.

This isn't normal.

The overall sentiment of these big-money traders is split between 41% bullish and 37%, bearish.

Out of all of the special options we uncovered, 17 are puts, for a total amount of $1,267,783, and 31 are calls, for a total amount of $1,786,414.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $600.0 to $1280.0 for Costco Wholesale during the past quarter.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of Costco Wholesale stands at 185.69, with a total volume reaching 2,296.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Costco Wholesale, situated within the strike price corridor from $600.0 to $1280.0, throughout the last 30 days.

Costco Wholesale Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

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 280 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.

In light of the recent options history for Costco Wholesale, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Costco Wholesale

• With a trading volume of 705,841, the price of COST is up by 1.21%, reaching $1018.03.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 30 days from now.

Expert Opinions on Costco Wholesale

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $1100.0.

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. * Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $1100. * Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $1100.

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.