Deep-pocketed investors have adopted a bullish approach towards Chewy CHWY, 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 CHWY usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for Chewy. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 62% leaning bullish and 37% bearish. Among these notable options, 3 are puts, totaling $150,063, and 5 are calls, amounting to $431,995.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $15.0 to $25.0 for Chewy over the recent three 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 Chewy'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 Chewy's whale activity within a strike price range from $15.0 to $25.0 in the last 30 days.
Chewy Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CHWY | CALL | SWEEP | BULLISH | 06/21/24 | $15.00 | $140.5K | 306 | 157 |
| CHWY | CALL | SWEEP | BULLISH | 04/19/24 | $15.00 | $90.3K | 2.3K | 0 |
| CHWY | CALL | SWEEP | BULLISH | 09/20/24 | $17.50 | $87.3K | 169 | 0 |
| CHWY | PUT | SWEEP | BEARISH | 01/16/26 | $17.50 | $81.8K | 383 | 1 |
| CHWY | CALL | SWEEP | BULLISH | 06/21/24 | $15.00 | $61.7K | 306 | 155 |
About Chewy
Chewy is the largest e-commerce pet care retailer in the U.S., generating $10.1 billion in 2022 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a standalone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.
After a thorough review of the options trading surrounding Chewy, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Chewy
- Trading volume stands at 2,033,540, with CHWY's price up by 0.79%, positioned at $17.96.
- RSI indicators show the stock to be may be oversold.
- Earnings announcement expected in 48 days.
What The Experts Say On Chewy
In the last month, 2 experts released ratings on this stock with an average target price of $33.0.
- An analyst from Barclays upgraded its action to Overweight with a price target of $30.
- Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on Chewy with a target price of $36.
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 Chewy with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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