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

AutoZone, Inc. +0.23% Post

AutoZone, Inc.

AZO

2910.27

2910.27

+0.23%

0.00% Post

Deep-pocketed investors have adopted a bearish approach towards AutoZone (NYSE:AZO), 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 AZO usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 16 extraordinary options activities for AutoZone. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 43% leaning bullish and 56% bearish. Among these notable options, 4 are puts, totaling $455,947, and 12 are calls, amounting to $808,301.

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 $2600.0 and $3400.0 for AutoZone, spanning the last three months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for AutoZone options trades today is 21.12 with a total volume of 191.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for AutoZone's big money trades within a strike price range of $2600.0 to $3400.0 over the last 30 days.

AutoZone Option Activity Analysis: Last 30 Days

Options Call Chart

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
AZO PUT SWEEP BULLISH 04/19/24 $2950.00 $263.0K 23 80
AZO CALL SWEEP BULLISH 06/21/24 $3300.00 $209.6K 27 28
AZO CALL TRADE BULLISH 06/21/24 $3100.00 $158.8K 17 10
AZO PUT TRADE BEARISH 06/21/24 $3100.00 $81.0K 9 6
AZO PUT TRADE BEARISH 06/21/24 $2970.00 $73.8K 0 9

About AutoZone

AutoZone operates as a leading retailer of aftermarket automotive parts in the United States. The firm operates over 6,300 stores domestically, serving both the do-it-yourself and commercial (do-it-for-me) end markets. Through its vast store footprint and distribution network, AutoZone manages a wide array of stock-keeping units applicable to numerous vehicle makes and models, providing its consumers with ample product availability. The firm drives traffic by providing superior and convenient customer service as AutoZone's team of knowledgeable staff assists consumers with diagnosing a vehicle's problem, selecting the necessary part for replacement, and in some instances, installation. The company also operates internationally, with over 750 stores in Mexico and 100 in Brazil.

Following our analysis of the options activities associated with AutoZone, we pivot to a closer look at the company's own performance.

Current Position of AutoZone

  • Trading volume stands at 58,703, with AZO's price down by 0.0%, positioned at $3124.01.
  • RSI indicators show the stock to be may be overbought.
  • Earnings announcement expected in 74 days.

Professional Analyst Ratings for AutoZone

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $3135.0.

  • Maintaining their stance, an analyst from DA Davidson continues to hold a Neutral rating for AutoZone, targeting a price of $3025.
  • Consistent in their evaluation, an analyst from Wedbush keeps a Outperform rating on AutoZone with a target price of $3400.
  • An analyst from Barclays has decided to maintain their Overweight rating on AutoZone, which currently sits at a price target of $3100.
  • An analyst from Wedbush downgraded its action to Outperform with a price target of $2950.
  • An analyst from JP Morgan persists with their Overweight rating on AutoZone, maintaining a target price of $3200.

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 AutoZone with Benzinga Pro for real-time alerts.

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