Deep-pocketed investors have adopted a bearish approach towards Costco Wholesale COST, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in COST usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 49 extraordinary options activities for Costco Wholesale. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 26% leaning bullish and 48% bearish. Among these notable options, 14 are puts, totaling $1,435,780, and 35 are calls, amounting to $2,538,695.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $355.0 to $890.0 for Costco Wholesale over the last 3 months.
Volume & Open Interest Trends
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 $355.0 to $890.0 in the last 30 days.
Costco Wholesale Option Activity Analysis: Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | PUT | SWEEP | BEARISH | 06/20/25 | $98.95 | $95.8 | $99.29 | $855.00 | $505.8K | 0 | 51 |
| COST | PUT | SWEEP | BEARISH | 12/20/24 | $41.35 | $40.6 | $41.35 | $780.00 | $206.7K | 70 | 0 |
| COST | CALL | SWEEP | BEARISH | 06/07/24 | $12.8 | $12.65 | $12.65 | $800.00 | $197.3K | 58 | 358 |
| COST | CALL | TRADE | NEUTRAL | 01/17/25 | $239.05 | $232.15 | $235.25 | $575.00 | $188.2K | 771 | 0 |
| COST | CALL | TRADE | BEARISH | 07/19/24 | $288.9 | $285.5 | $285.5 | $500.00 | $142.7K | 23 | 5 |
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 over 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 UK.
Following our analysis of the options activities associated with Costco Wholesale, we pivot to a closer look at the company's own performance.
Present Market Standing of Costco Wholesale
- Currently trading with a volume of 901,049, the COST's price is down by -1.44%, now at $775.86.
- RSI readings suggest the stock is currently may be overbought.
- Anticipated earnings release is in 17 days.
What Analysts Are Saying About Costco Wholesale
In the last month, 4 experts released ratings on this stock with an average target price of $775.0.
- Maintaining their stance, an analyst from Citigroup continues to hold a Neutral rating for Costco Wholesale, targeting a price of $710.
- Maintaining their stance, an analyst from Telsey Advisory Group continues to hold a Outperform rating for Costco Wholesale, targeting a price of $800.
- An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $790.
- An analyst from Telsey Advisory Group has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $800.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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