What the Options Market Tells Us About Shopify

Shopify, Inc. Class A -2.19%

Shopify, Inc. Class A




Investors with a lot of money to spend have taken a bearish stance on Shopify (NYSE:SHOP).

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 SHOP, 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 23 uncommon options trades for Shopify.

This isn't normal.

The overall sentiment of these big-money traders is split between 34% bullish and 65%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $173,740, and 20 are calls, for a total amount of $1,526,206.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $50.0 to $110.0 for Shopify over the recent three months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Shopify's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Shopify's whale trades within a strike price range from $50.0 to $110.0 in the last 30 days.

Shopify 30-Day Option Volume & Interest Snapshot

Options Call Chart

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
SHOP CALL SWEEP BEARISH 06/21/24 $70.00 $332.9K 4.1K 201
SHOP CALL SWEEP BULLISH 06/21/24 $50.00 $302.1K 1.6K 12
SHOP CALL SWEEP BEARISH 09/20/24 $80.00 $138.0K 314 100
SHOP PUT SWEEP BULLISH 09/20/24 $80.00 $93.6K 136 85
SHOP CALL TRADE BEARISH 03/15/24 $75.00 $65.4K 3.0K 92

About Shopify

Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Following our analysis of the options activities associated with Shopify, we pivot to a closer look at the company's own performance.

Shopify's Current Market Status

  • Currently trading with a volume of 5,387,245, the SHOP's price is down by -1.96%, now at $77.56.
  • RSI readings suggest the stock is currently may be approaching overbought.
  • Anticipated earnings release is in 47 days.

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 Shopify, Benzinga Pro gives you real-time options trades alerts.

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