A Closer Look at Costco Wholesale's Options Market Dynamics

Deep-pocketed investors have adopted a bullish 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 16 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 50% leaning bullish and 37% bearish. Among these notable options, 8 are puts, totaling $423,344, and 8 are calls, amounting to $547,726.

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 $565.0 to $960.0 for Costco Wholesale during the past quarter.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Costco Wholesale's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Costco Wholesale's significant trades, within a strike price range of $565.0 to $960.0, over the past month.

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 CALL SWEEP BEARISH 09/20/24 $41.0 $39.85 $39.8 $840.00 $202.9K 309 108
COST PUT TRADE BULLISH 09/20/24 $124.55 $117.4 $120.26 $960.00 $108.2K 10 10
COST CALL SWEEP NEUTRAL 07/19/24 $24.8 $24.25 $24.6 $845.00 $95.8K 107 51
COST CALL TRADE BEARISH 12/20/24 $78.1 $76.4 $76.4 $820.00 $76.4K 415 10
COST PUT SWEEP NEUTRAL 06/28/24 $24.0 $22.95 $24.0 $860.00 $72.0K 0 30

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

Current Position of Costco Wholesale

  • Currently trading with a volume of 215,421, the COST's price is up by 0.97%, now at $842.4.
  • RSI readings suggest the stock is currently may be overbought.
  • Anticipated earnings release is in 110 days.

Expert Opinions on Costco Wholesale

5 market experts have recently issued ratings for this stock, with a consensus target price of $857.6.

  • An analyst from Argus Research persists with their Buy rating on Costco Wholesale, maintaining a target price of $900.
  • Consistent in their evaluation, an analyst from Wells Fargo keeps a Equal-Weight rating on Costco Wholesale with a target price of $775.
  • An analyst from Loop Capital persists with their Buy rating on Costco Wholesale, maintaining a target price of $890.
  • An analyst from Truist Securities has decided to maintain their Buy rating on Costco Wholesale, which currently sits at a price target of $873.
  • An analyst from TD Cowen persists with their Buy rating on Costco Wholesale, maintaining a target price of $850.

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.

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Posted In: OptionsMarketsBZI-UOA
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