Deep-pocketed investors have adopted a bullish 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 12 extraordinary options activities for Shopify. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 58% leaning bullish and 41% bearish. Among these notable options, 7 are puts, totaling $667,383, and 5 are calls, amounting to $432,626.
Expected Price Movements
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $50.0 to $90.0 for Shopify over the last 3 months.
Insights into Volume & Open Interest
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 $50.0 to $90.0 over the preceding 30 days.
Shopify Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SHOP | PUT | TRADE | BEARISH | 01/17/25 | $2.38 | $2.31 | $2.37 | $50.00 | $260.7K | 10.1K | 0 |
| SHOP | CALL | TRADE | BULLISH | 09/20/24 | $2.72 | $2.67 | $2.72 | $75.00 | $183.6K | 6.8K | 21 |
| SHOP | PUT | TRADE | BULLISH | 09/20/24 | $8.55 | $8.5 | $8.5 | $70.00 | $158.9K | 1.7K | 14 |
| SHOP | CALL | TRADE | BEARISH | 09/20/24 | $0.77 | $0.72 | $0.72 | $90.00 | $104.4K | 2.6K | 98 |
| SHOP | PUT | SWEEP | BEARISH | 01/16/26 | $16.75 | $15.55 | $15.6 | $70.00 | $92.0K | 1.7K | 138 |
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.
Present Market Standing of Shopify
- Currently trading with a volume of 2,121,612, the SHOP's price is up by 0.7%, now at $65.08.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 29 days.
What The Experts Say On Shopify
In the last month, 4 experts released ratings on this stock with an average target price of $77.5.
- An analyst from Evercore ISI Group upgraded its action to Outperform with a price target of $75.
- An analyst from MoffettNathanson has revised its rating downward to Neutral, adjusting the price target to $65.
- An analyst from JP Morgan downgraded its action to Overweight with a price target of $74.
- An analyst from Citigroup persists with their Buy rating on Shopify, maintaining a target price of $96.
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.