Smart Money Is Betting Big In COST Options

Whales with a lot of money to spend have taken a noticeably bearish stance on Costco Wholesale.

Looking at options history for Costco Wholesale COST we detected 8 trades.

If we consider the specifics of each trade, it is accurate to state that 37% of the investors opened trades with bullish expectations and 62% with bearish.

From the overall spotted trades, 3 are puts, for a total amount of $269,800 and 5, calls, for a total amount of $178,816.

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 $370.0 to $1160.0 for Costco Wholesale over the last 3 months.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of Costco Wholesale stands at 293.5, with a total volume reaching 219.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Costco Wholesale, situated within the strike price corridor from $370.0 to $1160.0, throughout the last 30 days.

Costco Wholesale 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
COST PUT TRADE BULLISH 01/17/25 $427.8 $419.4 $421.0 $1160.00 $210.5K 0 5
COST CALL SWEEP NEUTRAL 07/19/24 $44.55 $43.35 $43.96 $725.00 $39.5K 326 0
COST CALL TRADE BEARISH 10/18/24 $377.4 $373.5 $373.6 $370.00 $37.3K 3 1
COST CALL SWEEP NEUTRAL 07/19/24 $38.65 $37.65 $38.14 $735.00 $34.3K 365 6
COST CALL TRADE BULLISH 06/21/24 $85.25 $82.55 $85.25 $665.00 $34.1K 307 4

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.

After a thorough review of the options trading surrounding Costco Wholesale, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Costco Wholesale's Current Market Status

  • Trading volume stands at 50,733, with COST's price up by 0.51%, positioned at $735.01.
  • RSI indicators show the stock to be may be approaching overbought.
  • Earnings announcement expected in 38 days.

What The Experts Say On Costco Wholesale

5 market experts have recently issued ratings for this stock, with a consensus target price of $776.0.

  • An analyst from Evercore ISI Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $805.
  • An analyst from Gordon Haskett has revised its rating downward to Accumulate, adjusting the price target to $775.
  • Maintaining their stance, an analyst from Loop Capital continues to hold a Buy rating for Costco Wholesale, targeting a price of $820.
  • An analyst from DA Davidson has decided to maintain their Neutral rating on Costco Wholesale, which currently sits at a price target of $680.
  • An analyst from Telsey Advisory Group has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $800.

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 Costco Wholesale with Benzinga Pro for real-time alerts.

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Posted In: OptionsMarketsBZI-UOA
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