What the Options Market Tells Us About Shopify

Deep-pocketed investors have adopted a bullish approach towards Shopify SHOP, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in SHOP usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 10 extraordinary options activities for Shopify. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 60% leaning bullish and 30% bearish. Among these notable options, 2 are puts, totaling $418,785, and 8 are calls, amounting to $455,970.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $50.0 and $100.0 for Shopify, spanning the last three months.

Insights into Volume & Open Interest

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 $100.0 in 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.

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.

Shopify's Current Market Status

• Trading volume stands at 1,832,805, with SHOP's price up by 0.15%, positioned at $66.47.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 33 days.

Expert Opinions on Shopify

4 market experts have recently issued ratings for this stock, with a consensus target price of $77.5.

• An analyst from MoffettNathanson downgraded its action to Neutral with a price target of $65.
• An analyst from JP Morgan downgraded its action to Overweight with a price target of $74.
• An analyst from Evercore ISI Group upgraded its action to Outperform with a price target of $75.
• An analyst from Citigroup persists with their Buy rating on Shopify, maintaining a target price of $96.

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.