Decoding Costco Wholesale's Options Activity: What's the Big Picture?

Costco Wholesale Corporation +0.35%

Costco Wholesale Corporation

COST

795.81

+0.35%

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 15 trades.

If we consider the specifics of each trade, it is accurate to state that 33% of the investors opened trades with bullish expectations and 66% with bearish.

From the overall spotted trades, 3 are puts, for a total amount of $130,794 and 12, calls, for a total amount of $732,145.

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 $650.0 to $820.0 for Costco Wholesale during the past quarter.

Volume & Open Interest Trends

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $650.0 to $820.0 in the last 30 days.

Costco Wholesale Option Volume And Open Interest Over 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
COST CALL SWEEP NEUTRAL 03/15/24 $700.00 $261.1K 598 221
COST CALL TRADE BEARISH 01/17/25 $705.00 $68.0K 360 28
COST CALL SWEEP BEARISH 02/09/24 $705.00 $64.6K 194 184
COST CALL SWEEP BEARISH 03/15/24 $700.00 $62.9K 598 60
COST PUT SWEEP BEARISH 05/17/24 $675.00 $53.8K 41 35

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.

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

Current Position of Costco Wholesale

  • Currently trading with a volume of 501,378, the COST's price is down by -0.14%, now at $693.03.
  • RSI readings suggest the stock is currently may be overbought.
  • Anticipated earnings release is in 30 days.

Professional Analyst Ratings for Costco Wholesale

Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $695.0.

  • An analyst from Oppenheimer persists with their Outperform rating on Costco Wholesale, maintaining a target price of $695.

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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