Investors with deep pockets have leaned towards a bullish stance on Chewy’s stock (CHWY), piquing the curiosity of retail traders worldwide.
The surge in activity was uncovered today via Benzinga’s monitoring of publicly accessible options data. While the identities of these investors remain shrouded, such a notable shift in CHWY often hints at insider knowledge.
In a departure from the norm, Benzinga’s options scanner identified 8 trades involving Chewy, a statistically atypical occurrence.
Among these significant trades, sentiments among major players are divided, with 62% showing a bullish inclination and 37% leaning towards a bearish outlook. Notably, there was one put trade amounting to $43,050 and 7 call trades totaling $274,638.
Predictions on Price Movements
Evaluating the volume and open interest levels on these trades, it suggests that big investors have been eyeing a price range of $15.0 to $37.5 for Chewy over the past 3 months.
Deciphering Volume & Open Interest
Assessing the volume and open interest data is a compelling tactic when engaging in options trading. This information serves as a barometer for the liquidity and engagement levels of Chewy’s options specific to varying strike prices. The graph below tracks the fluctuation in volume and open interest of both calls and puts for all of Chewy’s lucrative trades, situated between a strike price range of $15.0 to $37.5 in the past 30 days.
Recent Trends in Chewy’s Options Volume and Open Interest
Top Tracked Options
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CHWY | CALL | TRADE | BEARISH | 01/17/25 | $17.8 | $17.6 | $17.64 | $15.00 | $65.2K | 2.0K | 137 |
| CHWY | PUT | TRADE | BULLISH | 04/17/25 | $2.93 | $2.85 | $2.87 | $27.50 | $43.0K | 76 | 152 |
| CHWY | CALL | TRADE | BULLISH | 09/20/24 | $2.55 | $2.51 | $2.55 | $30.00 | $41.3K | 8.4K | 405 |
| CHWY | CALL | TRADE | BULLISH | 09/20/24 | $2.5 | $2.43 | $2.5 | $30.00 | $38.0K | 8.4K | 764 |
| CHWY | CALL | SWEEP | BEARISH | 09/20/24 | $0.99 | $0.89 | $0.9 | $32.50 | $36.0K | 6.7K | 666 |
About Chewy
Chewy stands as the top e-commerce platform in the US for pet care, amassing $11.2 billion in sales in 2023 across various pet-related categories. Founded in 2011, the company was acquired by PetSmart in 2017 before making its independent debut on the public market in 2019, after incubating within the pet superstore chain for a couple of years. Chewy’s revenue streams stem from pet food, treats, medications, prescription fulfillment, and essential pet accessories.
Transitioning from the options market insights into Chewy’s intrinsic performance is crucial for a holistic perspective.
Current Market Status of Chewy
- Currently trading at a volume of 2,898,243, CHWY’s stock price has ascended by 2.16%, settling at $32.67.
- RSI indicators hint that the stock may be bordering on the overbought territory.
- Earnings announcement is anticipated in 79 days.
Industry Experts’ Take on Chewy
In the past month, 5 experts have issued stock ratings on Chewy, with an average target price of $29.6.
- Baird’s analyst reiterates their optimistic outlook on Chewy, upholding a target price of $32.
- J.P. Morgan’s analyst maintains an Overweight rating on Chewy, with a price target of $33.
- Evercore ISI Group’s analyst retains an In-Line rating on Chewy, focusing on a price goal of $29.
- Morgan Stanley’s analyst continues to issue an Overweight rating on Chewy, with a target price of $30.
- Bank of America Securities’ analyst persists with their Underperform rating on Chewy, supporting a target price of $24.
Options trading presents a more volatile avenue compared to traditional stock trading but offers higher profit potential. Seasoned options traders mitigate this risk by staying informed, strategically entering and exiting trades, leveraging multiple indicators, and maintaining a keen pulse on the markets.
