Costco Wholesale Unusual Options Activity

Mar 25, 2024

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

Looking at options history for Costco Wholesale (NASDAQ:COST) we detected 23 trades.

If we consider the specifics of each trade, it is accurate to state that 30% of the investors opened trades with bullish expectations and 69% with bearish.

From the overall spotted trades, 8 are puts, for a total amount of $328,195 and 15, calls, for a total amount of $794,635.

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 $500.0 and $800.0 for Costco Wholesale, spanning the last three months.

Volume & Open Interest Trends

In today’s trading context, the average open interest for options of Costco Wholesale stands at 219.21, with a total volume reaching 957.00. 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 $500.0 to $800.0, throughout the last 30 days.

Costco Wholesale Call and Put Volume: 30-Day Overview

Options Call Chart

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
COST CALL SWEEP BULLISH 03/28/24 $720.00 $221.2K 182 204
COST PUT TRADE BULLISH 04/05/24 $720.00 $105.9K 538 302
COST CALL SWEEP NEUTRAL 04/26/24 $750.00 $72.4K 313 194
COST CALL SWEEP BEARISH 04/26/24 $750.00 $72.0K 313 119
COST CALL TRADE BEARISH 01/17/25 $740.00 $64.9K 212 21

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 nearly 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 U.K.

Costco Wholesale’s Current Market Status

  • With a volume of 497,659, the price of COST is down -0.36% at $732.15.
  • RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
  • Next earnings are expected to be released in 59 days.

What The Experts Say On Costco Wholesale

5 market experts have recently issued ratings for this stock, with a consensus target price of $814.0.

  • 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.
  • Consistent in their evaluation, an analyst from Tigress Financial keeps a Buy rating on Costco Wholesale with a target price of $870.
  • Consistent in their evaluation, an analyst from Baird keeps a Outperform rating on Costco Wholesale with a target price of $850.
  • Consistent in their evaluation, an analyst from BMO Capital keeps a Outperform rating on Costco Wholesale with a target price of $800.
  • An analyst from Wells Fargo persists with their Equal-Weight rating on Costco Wholesale, maintaining a target price of $750.

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.

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