Someone with a lot of money to spend (and possibly insider knowledge) has taken a bearish stance on Costco Wholesale COST.
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with COST, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 23 uncommon options trades for Costco Wholesale.
This isn't normal.
The overall sentiment of these big-money traders is split between 47.83% bullish and 52.17%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $261,456, and 16 are calls, for a total amount of $1,304,813.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $360.0 to $540.0 for Costco Wholesale over the last 3 months.
Volume & Open Interest Development
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 $360.0 to $540.0 in the last 30 days.
Costco Wholesale Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| COST | CALL | TRADE | BULLISH | 01/19/24 | $480.00 | $751.5K | 38 | 90 |
| COST | CALL | SWEEP | BEARISH | 01/21/22 | $540.00 | $82.5K | 394 | 188 |
| COST | PUT | TRADE | BEARISH | 01/20/23 | $375.00 | $45.5K | 309 | 37 |
| COST | PUT | SWEEP | BEARISH | 03/18/22 | $440.00 | $45.1K | 43 | 61 |
| COST | CALL | SWEEP | BEARISH | 12/17/21 | $515.00 | $42.8K | 184 | 77 |
Where Is Costco Wholesale Standing Right Now?
- With a volume of 744,273, the price of COST is up 0.05% at $497.26.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 36 days.
What The Experts Say On Costco Wholesale:
- Telsey Advisory Group has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $535.0.
- Stifel has decided to maintain their Buy rating on Costco Wholesale, which currently sits at a price target of $515.0.
- Deutsche Bank has decided to maintain their Hold rating on Costco Wholesale, which currently sits at a price target of $468.0.
- Cowen & Co. has decided to maintain their Outperform rating on Costco Wholesale, which currently sits at a price target of $520.0.
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 are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
