Spotlight on Costco Wholesale: Analyzing the Surge in Options Activity

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 18 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 44% leaning bullish and 38% bearish. Among these notable options, 6 are puts, totaling $500,778, and 12 are calls, amounting to $1,250,954.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $800.0 and $1200.0 for Costco Wholesale, spanning the last three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Costco Wholesale'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 Costco Wholesale's whale trades within a strike price range from $800.0 to $1200.0 in the last 30 days.

Costco Wholesale 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

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 its frugal cost structure, the firm is able to price its merchandise below that of competing retailers, driving high sales volume per warehouse and generating strong profits on thin margins. Costco operates over 600 warehouses in the United States and has over 60% share in the domestic warehouse club industry. Internationally, Costco operates another 280 warehouses, primarily in Canada, Mexico, Japan, and the UK.

Current Position of Costco Wholesale

• Currently trading with a volume of 544,985, the COST's price is down by -0.11%, now at $1015.01.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 16 days.

What Analysts Are Saying About Costco Wholesale

In the last month, 3 experts released ratings on this stock with an average target price of $1100.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Telsey Advisory Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $1100. * Maintaining their stance, an analyst from Telsey Advisory Group continues to hold a Outperform rating for Costco Wholesale, targeting a price of $1100. * Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Outperform rating on Costco Wholesale with a target price of $1100.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Costco Wholesale, Benzinga Pro gives you real-time options trades alerts.