Costco Stock Surges 2.5% as Unusual Call Activity Tops $1.5M in Single-Session Options Flow
By TrendSpider Editor
Costco Wholesale Corporation (COST) is drawing attention from options traders Thursday, with over $1.55 million in total premium flowing into three unusual call contracts as the stock climbs 2.50% to $985.83. All three contracts are in-the-money, clustered around the $975 and $980 strikes with July
Costco Stock Surges 2.5% as Unusual Call Activity Tops $1.5M in Single-Session Options Flow
Costco Wholesale Corporation (COST) is drawing attention from options traders Thursday, with over $1.55 million in total premium flowing into three unusual call contracts as the stock climbs 2.50% to $985.83. All three contracts are in-the-money, clustered around the $975 and $980 strikes with July expiration, suggesting directional conviction rather than speculative hedging. With COST trading near the midpoint of its 52-week range of $844.06 to $1,096.50, this options activity adds weight to the session's bullish price action.
Key Drivers of the COST Stock Move
- Main Catalyst: Three unusual call contracts printed on COST during Thursday's session, totaling $1,559,237.10 in premium. The largest single contract was a $975 strike call expiring July 2, 2026, with 283 contracts traded against open interest that represents a 2,573% OI spike. A second $975 strike call added 54 contracts at 491% OI, and a $980 strike call saw 175 contracts change hands at 875% OI. All three contracts are in-the-money relative to the current price of $985.83.
- Bull Case: The extraordinary open interest percentages, particularly the 2,573% OI surge on the $975 call, point to fresh positioning rather than existing holders rolling contracts. With COST already up 2.50% on the session and all three calls in-the-money, buyers are paying for intrinsic value and betting on continued upside through the July 2 expiration.
- Bear Case: The tight clustering of expiration dates around July 2, 2026 means these positions have limited time to work if momentum stalls. COST remains roughly $111 below its 52-week high of $1,096.50, and any broader market pullback or sector rotation could quickly erode the in-the-money cushion on these contracts before expiration.
The forward setup for COST looks constructive given the concentration of in-the-money call buying at strikes just below the current price, which reflects traders expecting the stock to hold or extend gains through early July. Costco's business model as a membership-driven warehouse retailer has historically provided defensive earnings stability, which may be attracting options buyers looking for a relatively lower-volatility vehicle to express a near-term bullish thesis. With the stock sitting closer to the lower half of its 52-week range than the upper half, there is meaningful room to the upside if buying pressure accelerates toward the $1,096.50 high.
COST Unusual Options Activity
- Contract 1: Call, $975 strike, expiring July 2, 2026 | Volume: 283 contracts | Open Interest: 2,573% above prior OI | Status: In-the-Money | Premium: $884,375
- Contract 2: Call, $980 strike, expiring July 2, 2026 | Volume: 175 contracts | Open Interest: 875% above prior OI | Status: In-the-Money | Premium: $506,117.50
- Contract 3: Call, $975 strike, expiring July 2, 2026 | Volume: 54 contracts | Open Interest: 491% above prior OI | Status: In-the-Money | Premium: $168,744.60
Total unusual premium across all three contracts: $1,559,237.10. All contracts are call-side only, with zero put contracts flagged, reflecting an unambiguously directional bullish lean in today's unusual flow.
COST Seasonality
Early June has historically been a constructive period for consumer staples and warehouse retail names as investors position ahead of mid-year earnings cycles. Options expiring on July 2, 2026 fall just ahead of a period when Costco typically reports monthly sales data, which can serve as a near-term catalyst for momentum continuation or reversal.
COST Relative Performance
COST's 2.50% gain on Thursday places it as a notable outperformer on the session relative to the broader consumer staples sector, which tends to move in smaller increments during non-earnings days. Trading at $985.83, Costco sits approximately 16.6% below its 52-week high of $1,096.50, while remaining 16.8% above its 52-week low of $844.06, indicating the stock is holding a relatively balanced mid-range position with room to recover toward prior highs.