This is what whales are betting on Costco Wholesale – Costco Wholesale (NASDAQ: COST )

Investors with plenty of money to spend have taken a bearish stance on Costco Wholesale (NASDAQ: COST ).

And retailers need to know.

We noticed this today when the positions appeared in the history of public options that we track here at Benzinga.

Whether these are institutions or just rich individuals, we don’t know. But when something like this happens to COST, it often means that someone knows something is going to happen.

Today, Benzinga’s options scanner spotted 13 options trades for Costco Wholesale.

This is not normal.

The overall sentiment of these big money traders is split between 38% bullish and 61% bearish.

Out of all the options we discovered, there were 1 puts, for a total amount of $153,500, and 12, calls, for a total amount of $683,007.

Expected price movements

Based on the trading activity, it appears that the significant investors are targeting a price range ranging from $380.0 to $880.0 for Costco Wholesale over the past three months.

Analyze volume and open interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in measuring liquidity and interest levels for Costco Wholesale’s options at certain strike prices. Below we provide a snapshot of the trends in volume and open interest for calls and puts on Costco Wholesale’s significant trades, within a strike price range of $380.0 to $880.0, over the past month.

Costco Wholesale Option Volume and Open Interest over the last 30 days

Notable Option Activity:

SymbolPUT/CALLTrade TypeSentimentExp. DateStrying PriceTotal Trade PriceOpen InterestVolumeCOSTCALLTRADENEUTRAL06/21/24$670.00$153.5K650COSTECALLTRADEBEARISH01/17/25$380.00$122.4K830COSTCALL$6PBULLISH/320.00$122.4K830COSTCALL$6PBULLISH01/17/25 1.301.000.00. 6COST CALLS WHIPBEARD12/22/23$660.00$83.0K2.4K19COST CALLS WHIPBEARD12/22/23$665.00$75.0K772322

About Costco Wholesale

Costco operates a membership-based, no-frills retail model that aims to offer a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining expensive product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at the point of sale in the warehouse. Given Costco’s lean cost structure, the firm is able to price its goods below competing retailers, driving high sales volumes per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates 591 warehouses in the United States and boasts more than 60% market share in the local warehouse club industry. Internationally, Costco operates another 270 warehouses, mainly in markets such as Canada, Mexico, Japan and the United Kingdom

Where does Costco Wholesale currently stand?

Trading volume stands at 606,045, with COST’s price up 0.84% ​​to settle at $664.34. RSI indicators show that the stock may be overbought.

What the Experts Say About Costco Wholesale

Over the past month, 5 industry analysts have shared their insights on this stock and suggested an average target price of $656.6.

Maintaining their stance, an analyst at Stifel maintains a Buy rating on Costco Wholesale, with a price target of $615. In line with their evaluation, an analyst at Telsey Advisory Group maintains an outperform rating on Costco Wholesale with a target price of $700. An analyst at Evercore ISI Group has decided to maintain their outperform rating on Costco Wholesale, which currently has a price target of $650. An analyst at Telsey Advisory Group has decided to maintain their outperform rating on Costco Wholesale, which currently has a price target of $625. An analyst at Truist Securities decided to maintain their Buy rating on Costco Wholesale, which currently stands at a price target of $693.

Trading options involves greater risk, but also offers the potential for higher profits. Experienced traders mitigate these risks through continuous education, strategic trading adjustments, the use of multiple indicators and staying tuned to market dynamics. Stay on top of the latest options deals for Costco Wholesale with Benzinga Pro for real-time alerts.