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 )