Investors with a lot of money to spend have taken a bearish stance on Shopify (NYSE: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 9 uncommon options trades for Shopify.
This isn't normal.
The overall sentiment of these big-money traders is split between 44% bullish and 55%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $274,690, and 3 are calls, for a total amount of $190,900.
What's The Price Target?
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $70.0 and $92.0 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 1601.25 with a total volume of 528.00.
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 $70.0 to $92.0 over the last 30 days.
Shopify 30-Day Option Volume & Interest Snapshot
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SHOP | CALL | SWEEP | BULLISH | 10/18/24 | $6.9 | $6.65 | $6.9 | $80.00 | $124.8K | 578 | 0 |
| SHOP | PUT | TRADE | BEARISH | 06/21/24 | $12.3 | $12.0 | $12.3 | $80.00 | $83.6K | 1.7K | 0 |
| SHOP | PUT | TRADE | BULLISH | 01/17/25 | $16.6 | $16.25 | $16.35 | $80.00 | $55.5K | 3.6K | 0 |
| SHOP | PUT | SWEEP | BULLISH | 04/26/24 | $23.3 | $22.1 | $22.1 | $92.00 | $46.4K | 0 | 21 |
| SHOP | CALL | TRADE | BEARISH | 04/26/24 | $1.25 | $1.2 | $1.2 | $71.00 | $35.8K | 796 | 398 |
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.
In light of the recent options history for Shopify, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Where Is Shopify Standing Right Now?
- Currently trading with a volume of 702,793, the SHOP's price is up by 1.23%, now at $70.53.
- RSI readings suggest the stock is currently may be oversold.
- Anticipated earnings release is in 16 days.
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.