Bears strolling the isles at Costco with increased put activity Wholesaler Costco (COST) saw order flow that is showing that traders are looking for shares to continue to sell off with a 300% increase in option activity.
Traders were focused on the October 45 put strike where 15k+ contracts traded exceeding the current open interest of 4,887. Order flow shows that traders are looking for more room to the downside with 90% of the calls traded have been on the ask-side. The biggest order has been a block of 6,000 October 45 puts that were bought for $3.10. Implied volatility was higher by 10% at 34% from 31% on Friday.
Shares are coming into a major suport level where it has touched three times before, a break could send shares to March lows.
( This is a version of what appeared in our Trader Pro Service this yesterday )
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