Unpacking the Latest Options Trading Trends in Dollar Tree

Investors with a lot of money to spend have taken a bearish stance on Dollar Tree DLTR.

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 DLTR, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 11 options trades for Dollar Tree.

This isn't normal.

The overall sentiment of these big-money traders is split between 18% bullish and 81%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $982,850, and 10, calls, for a total amount of $918,386.

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 $133.0 and $185.0 for Dollar Tree, spanning the last three months.

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 $133.0 to $185.0 in the last 30 days.

Dollar Tree 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

About Dollar Tree

Dollar Tree operates discount stores across the United States and Canada, with over 8,200 shops under its namesake banner and 8,350 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.

In light of the recent options history for Dollar Tree, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Dollar Tree

• With a volume of 896,378, the price of DLTR is up 2.08% at $133.12.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 71 days.

What Analysts Are Saying About Dollar Tree

5 market experts have recently issued ratings for this stock, with a consensus target price of $142.4.

• Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Dollar Tree, targeting a price of $135.
• An analyst from Morgan Stanley persists with their Equal-Weight rating on Dollar Tree, maintaining a target price of $135.
• In a cautious move, an analyst from Telsey Advisory Group downgraded its rating to Outperform, setting a price target of $160.
• An analyst from JP Morgan has decided to maintain their Neutral rating on Dollar Tree, which currently sits at a price target of $122.
• 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.