Deep-pocketed investors have adopted a bearish 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 22 extraordinary options activities for Chewy. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 13% leaning bullish and 86% bearish. Among these notable options, 19 are puts, totaling $920,527, and 3 are calls, amounting to $149,400.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $15.0 to $25.0 for Chewy during the past quarter.
Insights into Volume & Open Interest
In today's trading context, the average open interest for options of Chewy stands at 1113.7, with a total volume reaching 15,139.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Chewy, situated within the strike price corridor from $15.0 to $25.0, throughout the last 30 days.
Chewy 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CHWY | PUT | SWEEP | BEARISH | 04/26/24 | $19.50 | $127.1K | 0 | 0 |
| CHWY | PUT | SWEEP | BEARISH | 07/19/24 | $22.50 | $97.8K | 3.6K | 164 |
| CHWY | PUT | SWEEP | BEARISH | 09/20/24 | $22.50 | $95.4K | 770 | 149 |
| CHWY | PUT | SWEEP | BEARISH | 07/19/24 | $25.00 | $94.3K | 2.1K | 122 |
| CHWY | CALL | SWEEP | BULLISH | 01/17/25 | $15.00 | $82.4K | 904 | 0 |
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.
Present Market Standing of Chewy
- With a volume of 3,055,191, the price of CHWY is down -0.23% at $17.66.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 9 days.
Professional Analyst Ratings for Chewy
In the last month, 1 experts released ratings on this stock with an average target price of $25.0.
- Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $25.
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.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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