Dollar Tree's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on Dollar Tree DLTR.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with DLTR, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 10 uncommon options trades for Dollar Tree.

This isn't normal.

The overall sentiment of these big-money traders is split between 60% bullish and 40%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $59,974, and 8 are calls, for a total amount of $625,660.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $40.0 to $85.0 for Dollar Tree over the last 3 months.

Volume & Open Interest Trends

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Dollar Tree's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Dollar Tree's substantial trades, within a strike price spectrum from $40.0 to $85.0 over the preceding 30 days.

Dollar Tree Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

About Dollar Tree

Dollar Tree operates discount stores across the United States and Canada, with over 8,800 shops under its namesake banner and 7,700 under Family Dollar. About 47% of Dollar Tree's sales in fiscal 2023 were composed of consumables (including food, health and beauty, and cleaning products), around 45% from variety items (including toys and homewares), and over 5% from seasonal items. Dollar Tree sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. Conversely, Family Dollar primarily sells consumable merchandise (80% of the banner's sales) at prices below $10. About two thirds of Family Dollar's stores are in urban and suburban markets, with the remaining one third located in rural areas.

Where Is Dollar Tree Standing Right Now?

• With a volume of 3,743,600, the price of DLTR is up 4.81% at $64.9.
• RSI indicators hint that the underlying stock may be approaching oversold.
• Next earnings are expected to be released in 13 days.

What The Experts Say On Dollar Tree

In the last month, 2 experts released ratings on this stock with an average target price of $80.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Wells Fargo persists with their Overweight rating on Dollar Tree, maintaining a target price of $85. * Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Market Perform rating on Dollar Tree with a target price of $75.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Dollar Tree, Benzinga Pro gives you real-time options trades alerts.