Costco (COST) Options Signal Bullish Bias as $1,020 Call Gains Attention — Here’s How to Position for a March Move

• Costco’s stock opened at $1,012.29 today and has slipped slightly to $1,004.83, with a -0.36% intraday decline.
• The options market is skewed bullish, with a call/put open interest ratio of ~1.06, showing stronger speculative demand for upside moves.
• The stock is currently trading just below the 200-day moving average and within the upper half of the Bollinger Band range, suggesting a potential consolidation phase.
• With a strong Q2 earnings beat and strategic product expansions like e-bikes and in-warehouse experiences, Costco shows resilience in a challenging retail environment.

What the Options Chain is Saying About Market Sentiment

Looking at the open interest for options expiring this Friday (Mar 20), the top five out-of-the-money (OTM) calls are concentrated at $1,100 and above, with the $1,100 call having the highest open interest at 1,997 contracts. This suggests that a significant chunk of market participants are betting on a meaningful move above the $1,100 level in the next three days.

On the put side, the top OTM puts are at $940 and lower, with the $940 put having the most open interest at 1,693 contracts. The concentration at $940 aligns with the 200-day moving average support zone (941.01–945.15). This indicates that some traders are hedging downside risks in case of a pullback toward that level.

The next Friday (Mar 27) options are more modest in open interest, with the top OTM call at $1,020 and the top OTM put at $940. This tells us that while near-term bullish positioning is strong, the market is still cautious about longer-term direction.

Connecting Options Sentiment to Costco’s Recent News

Costco has been in the spotlight for the right reasons. The recent Q2 earnings beat and dividend increase signaled financial strength, while product innovation like e-bikes and in-warehouse experiences are helping the company engage more deeply with its members. Analysts are increasingly bullish, with targets now pushing as high as $1,315.

However, there are risks. The ongoing legal challenges related to tariff refunds could create uncertainty and volatility. That said, these legal issues don’t seem to have dampened investor enthusiasm — the stock is still well above the 52-week low, and sentiment is skewed to the upside.

Actionable Trading Ideas for Today: Calls and a Strategic Long Position

For options traders looking for a short-term bullish play, the COST20260320C1100 is a compelling choice. With a strike at $1,100 and strong open interest, this call gives you leverage if the stock makes a push above $1,000. Given the current stock price and the bullish technical setup, a $1,100 call should act as a directional bet with defined risk in case the move doesn’t happen.

If you’re more conservative or prefer stock entry, look for an opportunity near $999.05, which is the middle Bollinger Band. If the stock holds here, it could be a low-risk entry. A breakout above the upper band at $1,019.40 would signal stronger momentum. A stop-loss just below $999 could protect your downside.

For those looking to hedge or play a longer-term position, the COST20260327P940 is worth considering. If Costco dips toward $940, this put could offer downside protection or a bearish play depending on your market view.

Volatility on the Horizon

Right now, the options market is telling us that bulls are in control. The stock is sitting near the middle of a long-term range and has just posted strong earnings. The key is to watch how it behaves around $999 and $1,019.40 — those are the pivot points in the short term.

There’s also the potential for earnings-driven volatility if Costco releases more positive results in the coming weeks. With analysts raising their price targets and management pushing into new product categories like e-bikes, the upside case remains intact — but the $940 support level is a critical watch point.

In short, Costco is in a sweet spot. The stock is showing signs of strength, the options market is leaning bullish, and the fundamentals are solid. Just be aware of the legal risks and keep a close eye on those key price levels. If you’re positioned correctly, you may be in a great place to benefit from what could be a breakout week.