Shopify's Options: A Look at What the Big Money is Thinking

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 65 uncommon options trades for Shopify.

This isn't normal.

The overall sentiment of these big-money traders is split between 38% bullish and 58%, bearish.

Out of all of the special options we uncovered, 44 are puts, for a total amount of $3,978,880, and 21 are calls, for a total amount of $2,906,170.

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Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $65.0 to $130.0 for Shopify during the past quarter.

Volume & Open Interest Development

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 $65.0 to $130.0, over the past month.

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.

Following our analysis of the options activities associated with Shopify, we pivot to a closer look at the company's own performance.

Where Is Shopify Standing Right Now?

• With a trading volume of 7,113,299, the price of SHOP is down by -1.31%, reaching $82.81.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 21 days from now.

Professional Analyst Ratings for Shopify

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $101.2.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Morgan Stanley has decided to maintain their Overweight rating on Shopify, which currently sits at a price target of $106. * Consistent in their evaluation, an analyst from Mizuho keeps a Neutral rating on Shopify with a target price of $85. * An analyst from Loop Capital persists with their Buy rating on Shopify, maintaining a target price of $120. * An analyst from Cantor Fitzgerald has decided to maintain their Neutral rating on Shopify, which currently sits at a price target of $80. * An analyst from DA Davidson persists with their Buy rating on Shopify, maintaining a target price of $115.

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.