Unpacking the Latest Options Trading Trends in Shopify
Deep-pocketed investors have adopted a bearish approach towards Shopify (NYSE: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 9 extraordinary options activities for Shopify. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 22% leaning bullish and 55% bearish. Among these notable options, 3 are puts, totaling $335,685, and 6 are calls, amounting to $186,695.
Expected Price Movements
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $60.0 to $70.0 for Shopify over the recent three 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 $70.0, over the past month.
Shopify Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SHOP | PUT | SWEEP | BEARISH | 07/26/24 | $2.73 | $2.59 | $2.6 | $64.00 | $195.0K | 2.8K | 1.0K |
| SHOP | PUT | SWEEP | NEUTRAL | 09/20/24 | $4.25 | $4.15 | $4.15 | $60.00 | $76.7K | 3.5K | 322 |
| SHOP | PUT | SWEEP | NEUTRAL | 09/20/24 | $4.15 | $4.1 | $4.15 | $60.00 | $63.9K | 3.5K | 322 |
| SHOP | CALL | SWEEP | BEARISH | 08/23/24 | $2.28 | $2.15 | $2.15 | $69.00 | $35.0K | 62 | 163 |
| SHOP | CALL | SWEEP | BULLISH | 10/18/24 | $3.15 | $3.05 | $3.1 | $70.00 | $31.0K | 6.1K | 10 |
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 1,453,004, with SHOP's price down by -1.74%, positioned at $61.57.
- RSI indicators show the stock to be is currently neutral between overbought and oversold.
- Earnings announcement expected in 14 days.
Professional Analyst Ratings for Shopify
A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $81.25.
- An analyst from Wolfe Research has revised its rating downward to Outperform, adjusting the price target to $80.
- Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Shopify, targeting a price of $96.
- An analyst from B of A Securities upgraded its action to Buy with a price target of $82.
- Maintaining their stance, an analyst from Piper Sandler continues to hold a Neutral rating for Shopify, targeting a price of $67.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Shopify options trades with real-time alerts from Benzinga Pro.