Shopify stock extends rally following Bull’s note

Shopify stock is heading for its 11th straight win

Shares Shopify Inc. (NYSE:SHOP) are heading for their eleventh straight daily gain, up 1.9% to trade at $64.20 at last glance, after JP Morgan Securities initiated coverage with an “overweight” rating and a $74 price target. The brokerage cited the e-commerce giant’s broad product range, ease of use and scale as competitive advantages in the industry.

However, the 40-day moving average appears to be keeping today’s gains in check. Currently, the prices are at approximately the same level as at the beginning of May gap after financial resultsyear-to-date equity is still down 17.9%.

Options bulls are likely happy with SHOP’s latest rally. On the International Stock Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), the stock’s 50-day put/call ratio of 2.79 is higher than 86% of last year’s readings.

Now looks like a great time to consider your options. Shopify shares’ Schaeffer Volatility Index (SVI) of 33% remains at a 12-month low, which means options traders are currently pricing in low volatility expectations.