Today we saw a trader buy over 2,000 COST October 12th 227.50 Calls for $.50. Since the stock market looks so weak today, I did not buy these Calls.
This is the power of Insider Buyer in the options market. This gives the trader the right but not obligation to buy almost 200,000 shares of COST between now and October 12th expiration and for this right they paid $.50 per 1 lot or almost $100,000 total. This is a big Insider Buyer of COST Calls. The right but not obligation to buy 200,000 shares might not seem like a big order, but that stock has only traded about 1,100,000 shares of stock today. This stock moves about $3.65 per day 1/3 of all days, so I think this stock could trade up to $228 by the end of the week.