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 33% leaning bullish and 33% bearish. Among these notable options, 6 are puts, totaling $238,687, and 12 are calls, amounting to $1,132,282.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $675.0 to $1200.0 for Costco Wholesale over the last 3 months.
Analyzing 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 $675.0 to $1200.0 in 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 | CALL | TRADE | BULLISH | 10/11/24 | $24.0 | $23.6 | $24.0 | $910.00 | $480.0K | 47 | 201 |
| COST | CALL | TRADE | BULLISH | 03/21/25 | $251.2 | $248.55 | $251.2 | $675.00 | $175.8K | 23 | 7 |
| COST | CALL | TRADE | BULLISH | 10/18/24 | $29.0 | $28.65 | $29.0 | $900.00 | $142.1K | 1.0K | 38 |
| COST | CALL | TRADE | BEARISH | 10/18/24 | $67.85 | $66.5 | $66.5 | $850.00 | $66.5K | 241 | 10 |
| COST | PUT | SWEEP | NEUTRAL | 12/20/24 | $102.8 | $100.05 | $101.32 | $1000.00 | $60.7K | 28 | 6 |
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 enjoys 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
- With a volume of 271,797, the price of COST is down -1.12% at $906.8.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 2 days.
What The Experts Say On Costco Wholesale
5 market experts have recently issued ratings for this stock, with a consensus target price of $919.6.
Turn $1000 into $1270 in just 20 days?
20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Telsey Advisory Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $925. * An analyst from Truist Securities downgraded its action to Hold with a price target of $873. * Maintaining their stance, an analyst from Telsey Advisory Group continues to hold a Outperform rating for Costco Wholesale, targeting a price of $925. * An analyst from Evercore ISI Group persists with their Outperform rating on Costco Wholesale, maintaining a target price of $925. * An analyst from Morgan Stanley persists with their Overweight rating on Costco Wholesale, maintaining a target price of $950.
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.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
