A large wave of identical sweeps hit the tape today for Costco (COST), all centered on the March 20, 2026 $950 put contracts. All trades are buys hitting the ask, with each order sized at 200 contracts. The total daily volume registered at 1,515 contracts at the time of the last trade. Compared to open interest of just 948, this yields a V/OI ratio of ~1.6, meaning today’s volume is significantly higher than existing open interest. This is often a sign of fresh positioning.
Premium outlay is substantial, with each sweep costing around $1.3M–$1.4M, signaling high conviction from the buyer(s). Total premium committed to these long term put options came in at $8.4M. With expiration nearly 5 months away, this is clearly a long-dated bet on COST, indicating expectations of a meaningful move over an extended timeframe.
Volume and Open Interest Data
The volume and open interest data for the COST 950P 03/20/2026 contract shows a major spike on 11/17/25. 1,593 contracts traded hands against an unchanged open interest of 948. This indicates that nearly all of this activity represents new positioning rather than closing trades. Prior days saw minimal volume, reinforcing how unusual and concentrated this surge is.
Despite the heavy buying, implied volatility stayed relatively stable near 24%, while the contract price climbed from roughly $62–$63 earlier in the week to $68 on 11/17. Overall, the chart reflects a large, sudden influx of long-dated put interest, signaling a strong bet rather than routine flow.
What’s Happening with COST
Costco Wholesale Corporation (COST) has experienced robust growth and expansion in recent months, marked by strong financial performance and significant developments in its operations. The company reported a notable increase in net sales, with October 2025 sales reaching $21.75 billion, up 8.6% year-over-year. Net income for the fourth quarter of 2025 rose by 11% to $2.61 billion. Costco’s expansion continues at an accelerated pace, as it plans to open 35 new warehouses in fiscal year 2026 after adding 27 new locations in 2025. This would bring its total warehouse count to 914 worldwide.
The company’s sales growth has been driven by strong demand across fresh food, ancillary businesses such as pharmacy and optical, and a 13.6% rise in e-commerce sales. Costco has also introduced new Kirkland Signature items and continues to see opportunities for further domestic and international expansion.
On the stock market, analyst consensus values COST at around $1,067 per share as of early November 2025, underscoring continued market confidence. Overall, Costco’s recent events highlight its focus on growth, value delivery, and operational innovation as it maintains momentum through late 2025.
About COST
Costco Wholesale (COST) is a global membership-based warehouse retailer known for selling high-quality goods at low prices through its bulk-purchase model. The company operates large warehouse clubs offering everything from groceries, appliances, electronics, and apparel to financial services, travel packages, and fuel. Costco emphasizes operational efficiency, limited product selection, and private-label value through its popular Kirkland Signature brand.
Its business model is driven heavily by recurring membership fees, which provide stable, high-margin revenue and help keep product prices competitively low. Overall, Costco is recognized for its strong customer loyalty, efficient cost structure, and consistent long-term growth.
Analyst Ratings
| Analyst Firm | Rating | Notes / Details |
|---|---|---|
| CFRA | ★★★★☆ (4 stars) | Positive rating |
| Market Edge | Avoid | Bearish stance |
| Argus | Buy | Bullish rating |
| Morningstar | ★☆☆☆☆ (1 star) | Bearish/low conviction |
| LSEG | Outperform | Bullish outlook |
| Schwab Equity Ratings | D | Bearish rating |
Analyst ratings for Costco (COST) show a mixed but mostly positive sentiment, with notable divergence between research firms. Bullish signals come from CFRA, which assigns a strong four-star rating, Argus with a clear Buy, and LSEG, which labels the stock Outperform.
On the bearish side, Market Edge issues an Avoid, Morningstar assigns a low one-star valuation, and Schwab Equity Ratings gives COST a D, indicating fundamental or valuation concerns. Overall, sentiment is split between optimism regarding Costco’s long-term business strength and caution about valuation or near-term performance.
Want to see more of these trades? Try out Cheddar Flow free for 7 days. Learn More
Disclaimer: Options trading involves significant risk and is not suitable for all investors. You may lose the entire investment, and certain strategies may result in losses exceeding the initial amount invested. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice. Always consult a financial or tax advisor before making investment decisions.
