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 30 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 30% leaning bullish and 70% bearish. Among these notable options, 14 are puts, totaling $1,583,365, and 16 are calls, amounting to $2,455,420.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $575.0 to $1060.0 for Costco Wholesale over the recent three months.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Costco Wholesale options trades today is 255.6 with a total volume of 3,463.00.
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 $575.0 to $1060.0 over the last 30 days.
Costco Wholesale Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| COST | CALL | TRADE | BULLISH | 01/17/25 | $62.05 | $61.25 | $62.05 | $725.00 | $1.1M | 695 | 405 |
| COST | PUT | SWEEP | BEARISH | 10/18/24 | $19.5 | $19.1 | $19.5 | $660.00 | $263.2K | 93 | 271 |
| COST | PUT | SWEEP | BEARISH | 10/18/24 | $19.5 | $19.25 | $19.39 | $660.00 | $262.7K | 93 | 135 |
| COST | CALL | SWEEP | BEARISH | 12/20/24 | $73.3 | $72.15 | $72.15 | $700.00 | $209.2K | 49 | 28 |
| COST | PUT | TRADE | BEARISH | 05/17/24 | $19.4 | $19.1 | $19.4 | $715.00 | $168.7K | 1.2K | 110 |
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 boasts 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
Where Is Costco Wholesale Standing Right Now?
- With a volume of 748,193, the price of COST is up 0.45% at $715.0.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 44 days.
What Analysts Are Saying About Costco Wholesale
5 market experts have recently issued ratings for this stock, with a consensus target price of $789.0.
- An analyst from BMO Capital has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $800.
- An analyst from Tigress Financial persists with their Buy rating on Costco Wholesale, maintaining a target price of $870.
- An analyst from Barclays persists with their Equal-Weight rating on Costco Wholesale, maintaining a target price of $700.
- Reflecting concerns, an analyst from Gordon Haskett lowers its rating to Accumulate with a new price target of $775.
- Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $800.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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