High-rolling investors have positioned themselves bullish on Costco Wholesale COST, 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 COST often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 12 options trades for Costco Wholesale. This is not a typical pattern.
The sentiment among these major traders is split, with 58% bullish and 41% bearish. Among all the options we identified, there was one put, amounting to $48,360, and 11 calls, totaling $1,180,417.
Predicted Price Range
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $370.0 to $610.0 for Costco Wholesale during the past quarter.
Volume & Open Interest Trends
In terms of liquidity and interest, the mean open interest for Costco Wholesale options trades today is 381.58 with a total volume of 34.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Costco Wholesale's big money trades within a strike price range of $370.0 to $610.0 over the last 30 days.
Costco Wholesale Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| COST | CALL | SWEEP | BEARISH | 01/17/25 | $380.00 | $366.8K | 83 | 0 |
| COST | CALL | TRADE | NEUTRAL | 01/17/25 | $370.00 | $269.0K | 45 | 0 |
| COST | CALL | SWEEP | BULLISH | 01/17/25 | $550.00 | $143.0K | 368 | 0 |
| COST | CALL | TRADE | NEUTRAL | 12/15/23 | $570.00 | $121.6K | 853 | 0 |
| COST | CALL | TRADE | BEARISH | 06/21/24 | $530.00 | $55.5K | 350 | 0 |
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.
Having examined the options trading patterns of Costco Wholesale, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Present Market Standing of Costco Wholesale
- Trading volume stands at 106,471, with COST's price up by 1.76%, positioned at $621.5.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 3 days.
Expert Opinions on Costco Wholesale
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $610.8.
- An analyst from Telsey Advisory Group has revised its rating downward to Outperform, adjusting the price target to $600.
- Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Costco Wholesale with a target price of $615.
- An analyst from Telsey Advisory Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $625.
- An analyst from Truist Securities has revised its rating downward to Buy, adjusting the price target to $619.
- Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Costco Wholesale with a target price of $595.
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.
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