Costco Wholesale's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on Costco Wholesale COST.

And retail traders should know.

We noticed this today when the trades 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.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 11 uncommon options trades for Costco Wholesale.

This isn't normal.

The overall sentiment of these big-money traders is split between 63% bullish and 36%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $284,000, and 8 are calls, for a total amount of $1,000,102.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $485.0 to $685.0 for Costco Wholesale over the last 3 months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $485.0 to $685.0 in the last 30 days.

Costco Wholesale 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

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 nearly 600 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?

• Currently trading with a volume of 493,327, the COST's price is down by -0.5%, now at $656.81.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 58 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 $678.2.

• An analyst from Truist Securities has decided to maintain their Buy rating on Costco Wholesale, which currently sits at a price target of $741.
• An analyst from DA Davidson has decided to maintain their Neutral rating on Costco Wholesale, which currently sits at a price target of $600.
• An analyst from BMO Capital persists with their Outperform rating on Costco Wholesale, maintaining a target price of $700.
• Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Costco Wholesale with a target price of $675.
• Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for Costco Wholesale, targeting a price of $675.

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.