27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Someone with a lot of money to spend has taken a bearish stance on Shopify (NYSE:SHOP).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, 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 this whale just did?
Today, Benzinga's options scanner spotted 46 uncommon options trades for Shopify.
This isn't normal.
The overall sentiment of these big-money traders is split between 30% bullish and 69%, bearish.
Out of all of the special options we uncovered, 27 are puts, for a total amount of $3,079,776, and 19 are calls, for a total amount of $1,320,528.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $450.0 to $1200.0 for Shopify over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Shopify options trades today is 329.29 with a total volume of 7,883.00.
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 $450.0 to $1200.0 over the last 30 days.
Shopify Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| SHOP | PUT | SWEEP | BULLISH | 05/20/22 | $700.00 | $1.7M | 1.1K | 2 |
| SHOP | PUT | SWEEP | BEARISH | 04/14/22 | $630.00 | $161.6K | 776 | 248 |
| SHOP | CALL | TRADE | BEARISH | 05/20/22 | $800.00 | $153.0K | 356 | 62 |
| SHOP | CALL | SWEEP | BEARISH | 04/08/22 | $700.00 | $143.5K | 631 | 62 |
| SHOP | PUT | SWEEP | NEUTRAL | 05/20/22 | $700.00 | $136.1K | 1.1K | 352 |
Where Is Shopify Standing Right Now?
- With a volume of 1,479,763, the price of SHOP is down -4.06% at $697.75.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 22 days.
What The Experts Say On Shopify:
- Wells Fargo downgraded its action to Overweight with a price target of $834
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.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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