Smart Money Is Betting Big In SHOP Options

Investors with a lot of money to spend have taken a bullish stance on Shopify 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 26 uncommon options trades for Shopify.

This isn't normal.

The overall sentiment of these big-money traders is split between 65% bullish and 34%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $118,371, and 23 are calls, for a total amount of $1,372,842.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $65.0 to $120.0 for Shopify over the recent three months.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for Shopify options trades today is 3169.4 with a total volume of 14,875.00.

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 $65.0 to $120.0 over the last 30 days.

Shopify Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
SHOP CALL SWEEP BULLISH 02/16/24 $95.00 $104.9K 6.6K 632
SHOP CALL SWEEP BULLISH 01/17/25 $65.00 $104.1K 10.3K 1.5K
SHOP CALL SWEEP BULLISH 05/17/24 $95.00 $93.0K 478 1.5K
SHOP CALL SWEEP BULLISH 05/17/24 $95.00 $91.5K 478 1.0K
SHOP CALL TRADE BULLISH 05/17/24 $95.00 $91.5K 478 1.2K

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.

Current Position of Shopify

  • Currently trading with a volume of 3,189,922, the SHOP's price is up by 2.42%, now at $90.0.
  • RSI readings suggest the stock is currently may be approaching overbought.
  • Anticipated earnings release is in 4 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.

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Posted In: OptionsMarketsBZI-UOA
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