Looking At Costco Wholesale's Recent Unusual Options Activity

Investors with a lot of money to spend have taken a bearish 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 10 uncommon options trades for Costco Wholesale.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 40%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $208,859, and 7 are calls, for a total amount of $244,712.

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 $485.0 to $1340.0 for Costco Wholesale over the last 3 months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Costco Wholesale options trades today is 346.4 with a total volume of 113.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Costco Wholesale's big money trades within a strike price range of $485.0 to $1340.0 over the last 30 days.

Costco Wholesale Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

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.

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

Costco Wholesale's Current Market Status

• With a trading volume of 249,086, the price of COST is up by 0.83%, reaching $862.01.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 45 days from now.

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 $923.4.

• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a Outperform rating on Costco Wholesale with a target price of $915.
• Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $925.
• Showing optimism, an analyst from Gordon Haskett upgrades its rating to Buy with a revised price target of $925.
• An analyst from Deutsche Bank has decided to maintain their Buy rating on Costco Wholesale, which currently sits at a price target of $927.
• An analyst from Oppenheimer persists with their Outperform rating on Costco Wholesale, maintaining a target price of $925.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Costco Wholesale options trades with real-time alerts from Benzinga Pro.