27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Someone with a lot of money to spend (and possibly insider knowledge) has taken a bearish stance on Costco Wholesale(NASDAQ:COST).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with COST, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 12 options trades for Costco Wholesale.
This isn't normal.
The overall sentiment of these big-money traders is split between 41.67% bullish and 58.33%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $29,575, and 11, calls, for a total amount of $1,023,190..
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 $350.0 to $500.0 for Costco Wholesale over the last 3 months.
Volume & Open Interest Development
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 $350.0 to $500.0 in the last 30 days.
Costco Wholesale Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| COST | CALL | TRADE | BEARISH | 01/21/22 | $350.00 | $300.0K | 676 | 25 |
| COST | CALL | TRADE | BULLISH | 12/17/21 | $475.00 | $162.8K | 226 | 313 |
| COST | CALL | TRADE | BULLISH | 12/17/21 | $475.00 | $120.8K | 226 | 916 |
| COST | CALL | SWEEP | BEARISH | 01/19/24 | $500.00 | $104.0K | 25 | 21 |
| COST | CALL | TRADE | BULLISH | 11/19/21 | $450.00 | $80.5K | 1.6K | 106 |
Where Is Costco Wholesale Standing Right Now?
- With a volume of 524,719, the price of COST is up 0.47% at $469.29.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 50 days.
What The Experts Say On Costco Wholesale:
- Credit Suisse has decided to maintain their Neutral rating on Costco Wholesale, which currently sits at a price target of $490.0.
- Cowen & Co. has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $520.0.
- Citigroup has decided to maintain their Neutral rating on Costco Wholesale, which currently sits at a price target of $495.0.
- Raymond James has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $490.0.
- Deutsche Bank has decided to maintain their Hold rating on Costco Wholesale, which currently sits at a price target of $424.0.
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 are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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