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 13 uncommon options trades for Shopify.
This isn't normal.
The overall sentiment of these big-money traders is split between 30% bullish and 69%, bearish.
Out of all of the special options we uncovered, 3 are puts, for a total amount of $298,300, and 10 are calls, for a total amount of $825,356.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $45.0 to $95.0 for Shopify during the past quarter.
Analyzing 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 $45.0 to $95.0 in the last 30 days.
Shopify 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| SHOP | CALL | TRADE | BULLISH | 01/17/25 | $70.00 | $367.0K | 4.4K | 0 |
| SHOP | PUT | TRADE | BEARISH | 01/17/25 | $45.00 | $219.8K | 5.1K | 700 |
| SHOP | CALL | TRADE | BULLISH | 02/16/24 | $60.00 | $150.1K | 4.2K | 230 |
| SHOP | CALL | SWEEP | BEARISH | 02/16/24 | $60.00 | $57.2K | 4.2K | 49 |
| SHOP | PUT | SWEEP | BEARISH | 01/19/24 | $74.00 | $52.9K | 1.0K | 0 |
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.
Present Market Standing of Shopify
- Trading volume stands at 3,201,716, with SHOP's price down by -0.52%, positioned at $72.44.
- RSI indicators show the stock to be may be overbought.
- Earnings announcement expected in 75 days.
Professional Analyst Ratings for Shopify
In the last month, 2 experts released ratings on this stock with an average target price of $59.0.
- An analyst from Piper Sandler has revised its rating downward to Underweight, adjusting the price target to $56.
- An analyst from Morgan Stanley persists with their Equal-Weight rating on Shopify, maintaining a target price of $62.
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.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
