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 9 uncommon options trades for Costco Wholesale.
This isn't normal.
The overall sentiment of these big-money traders is split between 66% bullish and 0%, bearish.
Out of all of the special options we uncovered, 3 are puts, for a total amount of $466,025, and 6 are calls, for a total amount of $309,347.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $265.0 to $1200.0 for Costco Wholesale during the past quarter.
Insights into 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 $265.0 to $1200.0, over the past month.
Costco Wholesale Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | PUT | TRADE | BULLISH | 01/17/25 | $389.5 | $380.85 | $384.0 | $1200.00 | $384.0K | 0 | 0 |
| COST | CALL | TRADE | BULLISH | 06/07/24 | $48.0 | $47.3 | $48.0 | $770.00 | $96.0K | 175 | 0 |
| COST | CALL | TRADE | BULLISH | 01/16/26 | $564.0 | $560.0 | $564.0 | $265.00 | $56.4K | 37 | 0 |
| COST | CALL | TRADE | NEUTRAL | 01/16/26 | $278.75 | $258.75 | $268.72 | $600.00 | $53.7K | 28 | 2 |
| COST | CALL | TRADE | BULLISH | 09/20/24 | $57.15 | $55.25 | $57.15 | $800.00 | $51.4K | 783 | 10 |
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.
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
Current Position of Costco Wholesale
- Currently trading with a volume of 47,175, the COST's price is up by 0.09%, now at $810.59.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 113 days.
What Analysts Are Saying About Costco Wholesale
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $827.6.
- Reflecting concerns, an analyst from BMO Capital lowers its rating to Outperform with a new price target of $875.
- An analyst from TD Cowen persists with their Buy rating on Costco Wholesale, maintaining a target price of $850.
- Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Costco Wholesale with a target price of $873.
- Consistent in their evaluation, an analyst from Barclays keeps a Equal-Weight rating on Costco Wholesale with a target price of $765.
- Consistent in their evaluation, an analyst from Wells Fargo keeps a Equal-Weight rating on Costco Wholesale with a target price of $775.
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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