This Is What Whales Are Betting On Costco Wholesale

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 positions 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.

Today, Benzinga's options scanner spotted 13 options trades for Costco Wholesale.

This isn't normal.

The overall sentiment of these big-money traders is split between 38% bullish and 61%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $153,500, and 12, calls, for a total amount of $683,007.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $380.0 to $880.0 for Costco Wholesale over the recent three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Costco Wholesale's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Costco Wholesale's significant trades, within a strike price range of $380.0 to $880.0, over the past month.

Costco Wholesale Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

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.

Where Is Costco Wholesale Standing Right Now?

• Trading volume stands at 606,045, with COST's price up by 0.84%, positioned at $664.34.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 73 days.

What The Experts Say On Costco Wholesale

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $656.6.

• Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for Costco Wholesale, targeting a price of $615.
• Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $700.
• An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $650.
• An analyst from Telsey Advisory Group has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $625.
• An analyst from Truist Securities has decided to maintain their Buy rating on Costco Wholesale, which currently sits at a price target of $693.

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 Costco Wholesale with Benzinga Pro for real-time alerts.