What the Options Market Tells Us About Costco Wholesale

Financial giants have made a conspicuous bearish move on Costco Wholesale. Our analysis of options history for Costco Wholesale COST revealed 15 unusual trades.

Delving into the details, we found 20% of traders were bullish, while 80% showed bearish tendencies. Out of all the trades we spotted, 3 were puts, with a value of $183,600, and 12 were calls, valued at $517,668.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $270.0 and $600.0 for Costco Wholesale, spanning the last three months.

Volume & Open Interest Trends

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $270.0 to $600.0 in the last 30 days.

Costco Wholesale Option Activity Analysis: 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 591 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 U.K.

After a thorough review of the options trading surrounding Costco Wholesale, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Costco Wholesale's Current Market Status

• With a trading volume of 455,103, the price of COST is up by 1.07%, reaching $597.14.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 29 days from now.

Expert Opinions on Costco Wholesale

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $600.0.

• Reflecting concerns, an analyst from Telsey Advisory Group lowers its rating to Outperform with a new price target of $600.
• Reflecting concerns, an analyst from Telsey Advisory Group lowers its rating to Outperform with a new price target of $600.
• Consistent in their evaluation, an analyst from JP Morgan keeps a Overweight rating on Costco Wholesale with a target price of $605.
• An analyst from Stifel persists with their Buy rating on Costco Wholesale, maintaining a target price of $595.
• An analyst from Telsey Advisory Group downgraded its action to Outperform with a price target of $600.

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.