A Closer Look at Ulta Beauty's Options Market Dynamics

Investors with a lot of money to spend have taken a bearish stance on Ulta Beauty (NASDAQ:ULTA).

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 ULTA, 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 14 uncommon options trades for Ulta Beauty.

This isn't normal.

The overall sentiment of these big-money traders is split between 28% bullish and 42%, bearish.

Out of all of the special options we uncovered, 8 are puts, for a total amount of $595,822, and 6 are calls, for a total amount of $221,880.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $360.0 to $500.0 for Ulta Beauty over the recent three months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of Ulta Beauty stands at 173.92, with a total volume reaching 716.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Ulta Beauty, situated within the strike price corridor from $360.0 to $500.0, throughout the last 30 days.

Ulta Beauty 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
ULTA PUT TRADE NEUTRAL 06/21/24 $62.1 $56.7 $59.9 $440.00 $251.5K 445 56
ULTA PUT SWEEP BEARISH 06/21/24 $17.0 $16.5 $17.0 $377.50 $85.0K 1 50
ULTA CALL SWEEP BULLISH 06/21/24 $20.1 $20.0 $20.0 $377.50 $70.0K 0 35
ULTA PUT SWEEP NEUTRAL 01/17/25 $121.6 $118.6 $119.6 $500.00 $59.9K 893 9
ULTA PUT SWEEP BEARISH 12/20/24 $40.8 $40.7 $40.8 $395.00 $57.1K 12 16

About Ulta Beauty

With 1,385 stores at the end of fiscal 2023 and a partnership with Target, Ulta Beauty is the largest specialized beauty retailer in the U.S. The firm offers makeup (41% of 2023 sales), fragrances, skin care (19% of sales), and hair care products (19% of sales), and bath and body items. Ulta offers private-label products and merchandise from more than 500 vendors. It also offers salon services, including hair, makeup, skin, and brow services, in all stores. Most Ulta stores are approximately 10,000 square feet and are in suburban strip centers. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.

Ulta Beauty's Current Market Status With a trading volume of 449,838, the price of ULTA is down by -1.83%, reaching $379.44. Current RSI values indicate that the stock is may be oversold. Next earnings report is scheduled for 9 days from now. Expert Opinions on Ulta Beauty

In the last month, 5 experts released ratings on this stock with an average target price of $442.0.

An analyst from Barclays has revised its rating downward to Equal-Weight, adjusting the price target to $434. Maintaining their stance, an analyst from Goldman Sachs continues to hold a Neutral rating for Ulta Beauty, targeting a price of $476. Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for Ulta Beauty, targeting a price of $475. Consistent in their evaluation, an analyst from Stifel keeps a Hold rating on Ulta Beauty with a target price of $475. Consistent in their evaluation, an analyst from Wells Fargo keeps a Underweight rating on Ulta Beauty with a target price of $350.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Ulta Beauty with Benzinga Pro for real-time alerts.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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