Dollar Tree's Options: A Look at What the Big Money is Thinking

High-rolling investors have positioned themselves bearish on Dollar Tree DLTR, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in DLTR often signals that someone has privileged information.

Today, Benzinga's options scanner spotted 12 options trades for Dollar Tree. This is not a typical pattern.

The sentiment among these major traders is split, with 33% bullish and 66% bearish. Among all the options we identified, there was one put, amounting to $53,410, and 11 calls, totaling $1,510,646.

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 $105.0 to $145.0 for Dollar Tree during the past quarter.

Volume & Open Interest Development

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 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 trades within a strike price range from $105.0 to $145.0 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 8,100 shops under its namesake banner and nearly 8,300 under Family Dollar. About 45% of Dollar Tree's sales in fiscal 2022 were composed of consumables (including food, health and beauty, and cleaning products), nearly 50% 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 (nearly 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.

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

Dollar Tree's Current Market Status

• With a trading volume of 831,079, the price of DLTR is down by -0.03%, reaching $116.32.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 1 days from now.

What Analysts Are Saying About Dollar Tree

In the last month, 4 experts released ratings on this stock with an average target price of $147.25.

• Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on Dollar Tree with a target price of $140.
• An analyst from Telsey Advisory Group downgraded its action to Outperform with a price target of $160.
• In a cautious move, an analyst from Truist Securities downgraded its rating to Buy, setting a price target of $129.
• In a cautious move, an analyst from Telsey Advisory Group downgraded its rating to Outperform, setting a price target of $160.

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.