What the Options Market Tells Us About Costco Wholesale

Author: Benzinga Insights | May 07, 2024 10:45am

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

Looking at options history for Costco Wholesale (NASDAQ:COST) we detected 25 trades.

If we consider the specifics of each trade, it is accurate to state that 64% of the investors opened trades with bullish expectations and 16% with bearish.

From the overall spotted trades, 10 are puts, for a total amount of $726,560 and 15, calls, for a total amount of $494,938.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $660.0 and $860.0 for Costco Wholesale, spanning the last three months.

Volume & Open Interest Trends

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Costco Wholesale's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Costco Wholesale's substantial trades, within a strike price spectrum from $660.0 to $860.0 over the preceding 30 days.

Costco Wholesale Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
COST	PUT	TRADE	NEUTRAL	09/20/24	$39.0	$38.6	$38.82	$780.00	$194.1K	9	133
COST	PUT	TRADE	BEARISH	10/18/24	$8.5	$8.4	$8.5	$660.00	$105.4K	340	11
COST	PUT	TRADE	BULLISH	06/21/24	$21.15	$20.7	$20.7	$760.00	$103.5K	655	64
COST	PUT	SWEEP	BULLISH	06/21/24	$20.9	$20.7	$20.7	$760.00	$93.1K	655	114
COST	CALL	SWEEP	NEUTRAL	06/21/24	$46.25	$45.25	$45.75	$735.00	$45.7K	475	24

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 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 UK.

Present Market Standing of Costco Wholesale

• Trading volume stands at 326,294, with COST's price up by 1.14%, positioned at $765.09.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 23 days.

What Analysts Are Saying About Costco Wholesale

5 market experts have recently issued ratings for this stock, with a consensus target price of $730.0.

• An analyst from Roth MKM persists with their Neutral rating on Costco Wholesale, maintaining a target price of $650.
• Maintaining their stance, an analyst from Evercore ISI Group continues to hold a Outperform rating for Costco Wholesale, targeting a price of $790.
• Maintaining their stance, an analyst from Loop Capital continues to hold a Buy rating for Costco Wholesale, targeting a price of $820.
• Consistent in their evaluation, an analyst from Citigroup keeps a Neutral rating on Costco Wholesale with a target price of $710.
• An analyst from DA Davidson has decided to maintain their Neutral rating on Costco Wholesale, which currently sits at a price target of $680.

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 Costco Wholesale with Benzinga Pro for real-time alerts.

Posted In: COST