COST is on track for its worst single-day percentage loss since March
Costco Wholesale Corp (NASDAQ:COST) stock is down 4.9% to trade at $206.63 at last glance, after the retailer reported worse-than-expected profits for the second quarter due to rising merchandising costs. Revenue beat estimates, however, and the equity still attracted no fewer than five price-target hikes, including one from Jefferies to $1,180 from $1,145.
Despite today's negative price action, COST sports a 26.7% year-over-year lead. Shares have pulled back from their Feb, 13, record high of $1,078,23, and are today breaching a recent floor at the $1,020 level as they gap below their 120-day moving average. If losses hold, today could mark Costco Wholesale stock's worst day since March.
The options pits are chiming in, with 13,000 calls and 20,000 puts across the tape so far today, which is 6 times the volume typically seen at this point. Most popular is the weekly 3/7 1,020 call, where new positions are being sold to open. These contracts will expire at the close.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), COST sports 50-day call/put volume ratio ratio of 1.19 that sits higher than 94% of annuals readings. This means options traders leaned bullish in the last 10 weeks.