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 33 uncommon options trades for Shopify.
This isn't normal.
The overall sentiment of these big-money traders is split between 48% bullish and 51%, bearish.
Out of all of the special options we uncovered, 10 are puts, for a total amount of $808,707, and 23 are calls, for a total amount of $964,301.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $50.0 to $135.0 for Shopify during the past quarter.
Volume & Open Interest Trends
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
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 activity within a strike price range from $50.0 to $135.0 in the last 30 days.
Shopify Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SHOP | PUT | TRADE | NEUTRAL | 01/16/26 | $68.35 | $65.4 | $66.65 | $135.00 | $399.9K | 2 | 60 |
| SHOP | CALL | SWEEP | BEARISH | 07/19/24 | $5.1 | $5.05 | $5.05 | $75.00 | $125.2K | 1.2K | 384 |
| SHOP | PUT | SWEEP | BEARISH | 05/17/24 | $25.1 | $24.85 | $25.05 | $95.00 | $97.6K | 426 | 0 |
| SHOP | PUT | SWEEP | NEUTRAL | 05/03/24 | $3.8 | $3.35 | $3.35 | $71.00 | $67.0K | 1.0K | 200 |
| SHOP | CALL | SWEEP | BEARISH | 07/19/24 | $5.1 | $5.05 | $5.05 | $75.00 | $60.6K | 1.2K | 131 |
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.
After a thorough review of the options trading surrounding Shopify, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Shopify
- With a volume of 8,661,431, the price of SHOP is down -2.04% at $68.57.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 17 days.
Expert Opinions on Shopify
In the last month, 3 experts released ratings on this stock with an average target price of $76.66666666666667.
- Consistent in their evaluation, an analyst from Piper Sandler keeps a Underweight rating on Shopify with a target price of $63.
- Maintaining their stance, an analyst from Loop Capital continues to hold a Hold rating for Shopify, targeting a price of $80.
- Consistent in their evaluation, an analyst from Baird keeps a Outperform rating on Shopify with a target price of $87.
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 Shopify with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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