Shopify Options Trading: A Deep Dive into Market Sentiment

Investors with a lot of money to spend have taken a bearish stance on Shopify 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 8 uncommon options trades for Shopify.

This isn't normal.

The overall sentiment of these big-money traders is split between 12% bullish and 87%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $78,705, and 6 are calls, for a total amount of $308,090.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $70.0 to $120.0 for Shopify over the recent three months.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for Shopify options trades today is 1148.0 with a total volume of 1,402.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Shopify's big money trades within a strike price range of $70.0 to $120.0 over the last 30 days.

Shopify 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

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.

Where Is Shopify Standing Right Now?

• With a trading volume of 642,559, the price of SHOP is up by 1.0%, reaching $77.0.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 66 days from now.

Professional Analyst Ratings for Shopify

In the last month, 5 experts released ratings on this stock with an average target price of $79.2.

• Maintaining their stance, an analyst from Barclays continues to hold a Equal-Weight rating for Shopify, targeting a price of $68.
• Consistent in their evaluation, an analyst from UBS keeps a Neutral rating on Shopify with a target price of $80.
• An analyst from RBC Capital downgraded its action to Outperform with a price target of $100.
• An analyst from Wells Fargo persists with their Overweight rating on Shopify, maintaining a target price of $85.
• An analyst from Piper Sandler has decided to maintain their Underweight rating on Shopify, which currently sits at a price target of $63.

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.