Analysis of AutoZone Options Trading
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy AZO?
Source: NASDAQ.COM
- Options Selling Risks: Selling puts does not allow investors to benefit from AutoZone's upside potential, as they only acquire shares if the contract is exercised, which requires the market price to fall below the $3300 strike.
- Yield Analysis: Unless AutoZone's stock drops by 8.4% and the contract is exercised, the only profit for the put seller comes from the $240 premium, yielding a 7% annualized return.
- Volatility Assessment: With a trailing twelve-month volatility of 26% calculated from the last 251 trading days, this metric aids in evaluating whether selling the March 2027 put at the $3300 strike offers a favorable risk-reward balance.
- Market Sentiment Indicator: On Tuesday, the put volume among S&P 500 components reached 1.01 million contracts, matching call volume, indicating a higher demand for puts than the long-term median put-call ratio of 0.65 suggests.
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Analyst Views on AZO
Wall Street analysts forecast AZO stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 3316.710
Low
3550
Averages
4225
High
4800
Current: 3316.710
Low
3550
Averages
4225
High
4800
About AZO
AutoZone, Inc. is a retailer and distributor of automotive replacement parts and accessories in the Americas. Its Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through its approximately 7,353 stores in the United States, Mexico and Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. The Company also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and its commercial customers can make purchases through www.autozonepro.com. In addition, the Company sells the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com. It also provides product information on its Duralast branded products through www.duralastparts.com.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Producer Price Index: The Producer Price Index (PPI) rose by 0.7% month-over-month in February, significantly exceeding the expected 0.3%, indicating that rising wholesale prices may foreshadow higher consumer prices, exacerbating inflationary pressures.
- Food Price Increases: The surge in fertilizer prices due to the war is expected to drive food prices higher, increasing living costs for consumers and potentially impacting overall economic spending capacity.
- Investor Strategy Shift: In light of escalating inflation, investors are advised to consider incorporating inflation-proof stocks into their portfolios to navigate potential economic challenges ahead.
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- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, such changes typically have a significant impact on the short-term performance of the affected stocks, prompting investors to pay close attention to these adjustments.
- Market Reaction Expectations: The adjustments in analyst ratings may lead to increased attention on AZO stock, as investors reassess their strategies based on these changes, potentially affecting trading volumes and price fluctuations.
- Source Reliability: The market news and data provided by Benzinga serve as a crucial reference for investors; although it does not offer investment advice, its analyst ratings page provides a comprehensive view of rating changes for informed decision-making.
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- Retailer Pressure: According to Wolfe Research, off-price retailers like Dollar General and Walmart, which primarily serve low-income consumers, are expected to face greater pressure as rising oil prices may force these shoppers to tighten their budgets, impacting sales performance.
- Stock Price Declines: Dollar General's shares have fallen 5% over the past week, while Walmart and Advance Auto Parts have seen declines of nearly 3% and 7%, respectively, indicating a market sensitivity to rising energy prices and their impact on consumer confidence.
- Challenges from Import Dependence: Retailers reliant on Chinese imports, particularly in flooring and decor, may face significant headwinds as the Shanghai Containerized Index rises due to logistical issues in Southeast Asian ports, further complicating product shipments to the Middle East.
See More
Argus Upgrades AutoZone to Buy Amid Turnaround Expectations
- Rating Upgrade: Argus has upgraded AutoZone (AZO) from Hold to Buy, with analyst Bill Selesky highlighting expectations for positive profit growth starting in the fiscal third quarter of 2026, indicating a potential inflection point for the shares.
- Earnings Outlook: Although AutoZone's recent FQ2 earnings were impacted by lower gross margins and higher operating expenses, analysts believe that future earnings will reaccelerate due to new store openings and growth in international markets.
- Market Expansion: AutoZone plans to open 350 to 360 new stores in 2026, which is expected to drive growth by increasing market share and enhancing sales productivity while effectively managing margins and operating expenses.
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