Decoding Shopify's Options Activity: What's the Big Picture?

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 18 extraordinary options activities for Shopify. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 44% leaning bullish and 38% bearish. Among these notable options, 5 are puts, totaling $187,170, and 13 are calls, amounting to $692,345.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $60.0 to $100.0 for Shopify over the last 3 months.

Volume & Open Interest Trends

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Shopify's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Shopify's significant trades, within a strike price range of $60.0 to $100.0, over the past month.

Shopify Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

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.

Present Market Standing of Shopify

• With a volume of 3,238,291, the price of SHOP is up 1.04% at $79.87.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 15 days.

What Analysts Are Saying About Shopify

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $88.6.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Baird has decided to maintain their Outperform rating on Shopify, which currently sits at a price target of $90. * An analyst from Citigroup persists with their Buy rating on Shopify, maintaining a target price of $103. * Maintaining their stance, an analyst from Scotiabank continues to hold a Sector Perform rating for Shopify, targeting a price of $80. * An analyst from RBC Capital has decided to maintain their Outperform rating on Shopify, which currently sits at a price target of $100. * An analyst from Barclays has decided to maintain their Equal-Weight rating on Shopify, which currently sits at a price target of $70.

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.