Chewy's Options: A Look at What the Big Money is Thinking

Author: Benzinga Insights | April 24, 2024 02:01pm

Investors with a lot of money to spend have taken a bearish stance on Chewy (NYSE:CHWY).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with CHWY, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 10 uncommon options trades for Chewy.

This isn't normal.

The overall sentiment of these big-money traders is split between 20% bullish and 50%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $84,682, and 7 are calls, for a total amount of $394,413.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $15.0 to $70.0 for Chewy 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 Chewy's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Chewy's significant trades, within a strike price range of $15.0 to $70.0, over the past month.

Chewy Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
CHWY	CALL	SWEEP	BULLISH	01/16/26	$5.9	$5.75	$5.9	$15.00	$112.6K	1.2K	191
CHWY	CALL	SWEEP	NEUTRAL	09/20/24	$1.76	$1.74	$1.75	$17.50	$56.9K	4.3K	1.8K
CHWY	CALL	SWEEP	NEUTRAL	09/20/24	$1.75	$1.73	$1.74	$17.50	$54.8K	4.3K	1.3K
CHWY	CALL	SWEEP	BEARISH	09/20/24	$1.75	$1.73	$1.74	$17.50	$50.1K	4.3K	715
CHWY	CALL	TRADE	BEARISH	10/18/24	$2.97	$2.94	$2.94	$15.00	$49.0K	992	257

About Chewy

Chewy is the largest e-commerce pet care retailer in the US, generating $11.2 billion in 2023 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a stand-alone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.

Chewy's Current Market Status

• Currently trading with a volume of 4,835,644, the CHWY's price is down by -1.63%, now at $15.35.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 35 days.

What Analysts Are Saying About Chewy

1 market experts have recently issued ratings for this stock, with a consensus target price of $16.0.

• Consistent in their evaluation, an analyst from Piper Sandler keeps a Neutral rating on Chewy with a target price of $16.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Chewy with Benzinga Pro for real-time alerts.

Posted In: CHWY