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 25 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 32% leaning bullish and 36% bearish. Among these notable options, 10 are puts, totaling $1,038,149, and 15 are calls, amounting to $2,890,138.
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 $225.0 to $900.0 for Costco Wholesale during the past quarter.
Volume & Open Interest Trends
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 $225.0 to $900.0, over the past month.
Costco Wholesale Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | CALL | SWEEP | BEARISH | 06/20/25 | $168.3 | $164.3 | $164.3 | $700.00 | $2.1M | 249 | 130 |
| COST | PUT | SWEEP | NEUTRAL | 07/26/24 | $53.4 | $47.0 | $49.74 | $860.00 | $392.8K | 152 | 84 |
| COST | PUT | TRADE | BULLISH | 07/26/24 | $65.25 | $62.95 | $62.95 | $875.00 | $220.3K | 157 | 66 |
| COST | PUT | TRADE | BEARISH | 07/26/24 | $65.8 | $58.0 | $63.0 | $875.00 | $189.0K | 157 | 1 |
| COST | CALL | TRADE | BULLISH | 10/18/24 | $41.5 | $41.3 | $41.5 | $820.00 | $124.5K | 241 | 33 |
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 enjoys 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.
After a thorough review of the options trading surrounding Costco Wholesale, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Present Market Standing of Costco Wholesale
- With a trading volume of 575,283, the price of COST is up by 0.5%, reaching $820.0.
- Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
- Next earnings report is scheduled for 60 days from now.
What Analysts Are Saying About Costco Wholesale
5 market experts have recently issued ratings for this stock, with a consensus target price of $906.0.
- An analyst from Telsey Advisory Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $925.
- Maintaining their stance, an analyst from Barclays continues to hold a Equal-Weight rating for Costco Wholesale, targeting a price of $830.
- An analyst from TD Cowen has decided to maintain their Buy rating on Costco Wholesale, which currently sits at a price target of $925.
- Consistent in their evaluation, an analyst from Oppenheimer keeps a Outperform rating on Costco Wholesale with a target price of $950.
- An analyst from Telsey Advisory Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $900.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Costco Wholesale, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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