Dollar General's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on Dollar General DG.

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 DG, 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 15 uncommon options trades for Dollar General.

This isn't normal.

The overall sentiment of these big-money traders is split between 60% bullish and 33%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $112,500, and 13 are calls, for a total amount of $2,805,926.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $70.0 and $110.0 for Dollar General, spanning the last three months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Dollar General's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Dollar General's substantial trades, within a strike price spectrum from $70.0 to $110.0 over the preceding 30 days.

Dollar General 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

About Dollar General

With more than 20,000 locations, Dollar General's banner is nearly ubiquitous across the rural United States. Dollar General serves as a convenient shopping destination for fill-in store trips, with its value proposition most relevant to consumers in small communities with a dearth of shopping options. The retailer operates a frugal store of about 7,500 square feet and primarily offers an assortment of branded and private-label consumable items (80% of net sales) such as paper and cleaning products, packaged food, and health and beauty items at low prices. Dollar General also offers a limited assortment of seasonal merchandise, home products, and apparel. The firm sells most items at a price point of $10 or less.

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

Present Market Standing of Dollar General

• With a volume of 10,462,984, the price of DG is down -1.57% at $88.78.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 56 days.

What Analysts Are Saying About Dollar General

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $84.0.

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. * An analyst from B of A Securities has decided to maintain their Buy rating on Dollar General, which currently sits at a price target of $90. * Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Market Perform rating on Dollar General with a target price of $85. * An analyst from UBS persists with their Buy rating on Dollar General, maintaining a target price of $95. * An analyst from Citigroup has decided to maintain their Sell rating on Dollar General, which currently sits at a price target of $69. * Maintaining their stance, an analyst from Piper Sandler continues to hold a Neutral rating for Dollar General, targeting a price of $81.

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 Dollar General, Benzinga Pro gives you real-time options trades alerts.