What the Options Market Tells Us About Shopify

Deep-pocketed investors have taken a bullish stance on Shopify (NYSE:SHOP) and that’s something market players shouldn’t ignore. Our tracking of public option records on Benzinga revealed this significant move today. The identity of these investors remains unknown, but such significant movement in the SHOP usually suggests that something big is about to happen.

This information comes from our observations today, when Benzinga’s Options Scanner highlighted 10 unusual options activity for Shopify. This level of activity is unusual.

The overall sentiment among heavyweight investors is split with 60% bullish and 30% bearish. Among these notable options are 2 puts worth $418,785 and 8 call options worth $455,970.

Estimated price range

After assessing trading volumes and Open Interest, it is obvious that major market players have been focusing on Shopify’s $50.0 to $100.0 price range over the past three months.

Volume insight and open interest

Looking at volume and open interest is a powerful move when trading options. This data can help you track liquidity and interest in Shopify options for a given strike price. Below we can see the evolution of call and put volume and open interest, respectively, for all Shopify whale trades in the strike price range of $50.0 to $100.0 over the last 30 days.

Shopify 30-Day Option – Volume and Interest Summary

Significant options transactions detected:

Symbol	SEND/CALL	Type of trade	Sentiment	To the power of. Date	Ask	Offer	Price	Strike price	Total Trade Price	Open interest	volume
STORE	PLACE	TRADE	BULLISH	08/02/24	0.6 dollars	$0.35	0.41 PLN	$54.00	350.3 thousand dollars	12	0
STORE	CALL	TRADE	NEUTRAL	18/10/24	5.6 dollars	5.5 dollars	$5.55	PLN 70.00	111.0 thousand dollars	1.0 thousand	604
STORE	CALL	SWEEP	BEARISH	18/10/24	5.6 dollars	$5.50	5.5 dollars	$70.00	110.0 thousand dollars	1.0 thousand	404
STORE	PLACE	TRADE	BEARISH	16/08/24	$23.60	23.5 dollars	PLN 23.6	$90.00	$68.4k	15	0
STORE	CALL	TRADE	BULLISH	18/10/24	$5.75	$5.65	$5.73	$70.00	57.3k dollars	1.0 thousand	204

About Shopify

Shopify offers an e-commerce platform primarily for small and medium-sized businesses. The company has two segments. The Subscription Solutions segment enables Shopify merchants to conduct e-commerce across a variety of platforms, including the company’s website, brick-and-mortar stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The commerce solutions segment offers platform add-on products that facilitate e-commerce and includes Shopify Payments, Shopify Shipping and Shopify Capital.

After a thorough review of the options trading around Shopify, we move on to examine the company in greater detail. This includes assessing its current market status and performance.

Shopify’s current market status

• Trading volume is 1,832,805 and the SHOP share price is up 0.15% to settle at $66.47.
• RSI indicators indicate that the stock may be overbought.
• Results expected in 33 days.

Expert Opinions on Shopify

Four market experts recently rated this stock, setting a consensus price target of $77.50.

• An analyst at MoffettNathanson downgraded the stock to Neutral and set a price target of $65.
• The JP Morgan analyst downgraded the stock to Overweight, setting a price target of $74.
• The analyst at Evercore ISI Group upgraded the stock to Outperform and set a price target of $75.
• The Citigroup analyst maintains a Buy rating on Shopify, maintaining a price target of $96.

Options trading involves higher risk, but also offers the potential for higher returns. Experienced traders mitigate these risks through ongoing education, strategic trading adjustments, use of various indicators, and staying in touch with market dynamics. Stay on top of the latest Shopify options trades with Benzinga Pro for real-time alerts.