Investors with a lot of money to spend have taken a bullish stance on Shopify (NYSE:SHOP).
And retail traders should know.
We noticed this today when the positions 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.
Today, Benzinga's options scanner spotted 13 options trades for Shopify.
This isn't normal.
The overall sentiment of these big-money traders is split between 53% bullish and 23%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $39,744, and 12, calls, for a total amount of $1,228,008.
Predicted Price Range
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $25.0 and $95.0 for Shopify, spanning the last three months.
Volume & Open Interest Development
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Shopify's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Shopify's substantial trades, within a strike price spectrum from $25.0 to $95.0 over the preceding 30 days.
Shopify Option Volume And Open Interest Over Last 30 Days
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 | TRADE | BULLISH | 09/20/24 | $28.9 | $27.0 | $28.9 | $30.00 | $546.2K | 202 | 200 |
| SHOP | CALL | SWEEP | BULLISH | 01/16/26 | $37.05 | $36.25 | $36.25 | $25.00 | $278.8K | 230 | 77 |
| SHOP | CALL | TRADE | BEARISH | 01/16/26 | $16.55 | $15.5 | $15.5 | $60.00 | $77.5K | 1.8K | 85 |
| SHOP | CALL | TRADE | BEARISH | 01/16/26 | $16.8 | $15.5 | $15.85 | $60.00 | $55.4K | 1.8K | 0 |
| SHOP | CALL | SWEEP | BEARISH | 01/16/26 | $6.3 | $6.15 | $6.15 | $95.00 | $50.4K | 7.4K | 99 |
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 volume of 2,149,664, the price of SHOP is down -1.66% at $57.93.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 71 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.