Deep-pocketed investors have adopted a bearish 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 16 extraordinary options activities for Shopify. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 43% leaning bullish and 56% bearish. Among these notable options, 3 are puts, totaling $161,670, and 13 are calls, amounting to $966,668.
Expected Price Movements
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 $90.0 for Shopify, spanning the last three months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Shopify options trades today is 3036.09 with a total volume of 5,045.00.
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 $50.0 to $90.0 over the last 30 days.
Shopify Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| SHOP | CALL | SWEEP | BEARISH | 12/15/23 | $65.00 | $212.0K | 7.2K | 562 |
| SHOP | CALL | SWEEP | NEUTRAL | 01/19/24 | $68.00 | $193.9K | 6.0K | 711 |
| SHOP | PUT | SWEEP | BULLISH | 06/21/24 | $75.00 | $89.9K | 264 | 1 |
| SHOP | CALL | SWEEP | BULLISH | 01/19/24 | $68.00 | $79.5K | 6.0K | 1.3K |
| SHOP | CALL | SWEEP | BULLISH | 01/19/24 | $68.00 | $77.0K | 6.0K | 472 |
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 3,485,010, the price of SHOP is down -0.52% at $66.93.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 89 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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