Costco's Options Signal a Battle at $910–$980: How Traders Can Navigate the Bullish Push and Bearish Resistance

• Costco’s stock fell 1.15% to $912.41, trading below its 30-day moving average of $928.15
• Options data shows heavy put open interest at $880 and call open interest at $1,000 for Friday expiration
• Block traders sold 80 puts at $942.50 expiring in 2025, hinting at long-term confidence

Here’s the core insight: Costco’s options market is locked in a tug-of-war between bears eyeing a drop to $870 and bulls betting on a rebound to $1,000. The stock’s technicals and news flow suggest a volatile path ahead, but smart traders can exploit the imbalance in open interest and key support/resistance levels.

The Options Imbalance: Where Bears and Bulls Are Staking Their Bets

Let’s start with the numbers that scream strategy. For Friday expiration, puts dominate at $880 (OI: 3,525) and $875 (OI: 3,275), while calls peak at $950 (OI: 1,948) and $1,000 (OI: 1,751). That 0.91 put/call ratio isn’t just bearish—it’s a warning sign that institutional players are hedging against a sharp decline. But here’s the twist: the block trade selling 80 puts at $942.50 (COST20250926P942.5) suggests some big players are betting Costco will stabilize above $940 by late 2025.

The risk? If the stock breaks below its intraday low of $910.89, the $880 puts could trigger a cascade of liquidation. But if it holds above $910.94 (30-day support), the $930 call (expiring next Friday) becomes a high-conviction play. The key is watching whether volume at $910.8933 turns into a floor or a pivot point.

News That Could Tip the Scales: Sales, Stores, and a Controversial Policy

Costco’s October sales beat expectations, with 8.6% growth and 14.8% e-commerce surge. That’s solid, but the real drama is its decision to stop dispensing mifepristone. While management calls it a values-driven move, critics warn it could alienate members. Here’s the rub: investor sentiment is split. The stock’s outperformance today shows some see the policy shift as a political win, but others worry about long-term brand damage.

The expansion news—12 new stores in 2025—adds another layer. Aggressive growth usually boosts shares, but only if margins hold. With tariffs looming, Costco’s ability to absorb costs without price hikes will test its pricing power. For now, the market seems to trust management’s playbook, but that trust could erode if inflation pressures resurface.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the most compelling setups are:

• Bullish Play: Buy the $930 call expiring next Friday (OI: 319). If Costco breaks above its 200-day moving average ($971.29) or the Bollinger Band middle line ($926.61), this strike could see explosive demand. Entry: $926–$930. Target: $950 (30D MA) or $970 (200D MA if the rally accelerates).

• Bearish Play: Buy the $880 put expiring this Friday (OI: 3,525). If the stock gaps down below $910.89, this put could double in value. Entry: $910.94–$911.82 (30D support). Stop-loss: $915. Exit: $890 (next key level).

For stock traders, consider these levels:

• Buy on Dips: If Costco holds above $910.94, consider entries near $912–$915. Target: $926 (Bollinger middle band) or $947 (upper Bollinger band if the rebound is strong).
• Short on Breaks: If the stock closes below $910.89, short near $908–$910 with a stop at $915. Target: $890 (put-heavy zone) or $875 (next support).

Volatility on the Horizon: Preparing for the Next Move

Costco’s story isn’t just about numbers—it’s about values, growth, and political currents. The options market is pricing in a high-stakes game: bears want a retreat to $870, bulls aim for $1,000. The coming weeks will test whether the block traders’ confidence in the $942.50 puts pays off or if the $880 puts become a magnet for panic selling.

For now, the stock sits in a fragile equilibrium. If Costco’s management can balance its expansion push with margin stability—and weather the policy controversy—it could surprise to the upside. But if inflation or reputational damage gains traction, the $870–$880 zone will become a battleground. Traders who watch the $910.89 level and the $930 call’s performance next week will have the best seat in the house.