A huge investor has taken a bullish position on Shopify (NYSE:SHOP), and this development holds significance for retail traders.
Among the prominent options we discovered, there are seven puts valued at $282,254 and twenty-three calls valued at $4,305,104. This suggests that the sentiment among high-profile traders leans towards 56% bullish and 43% bearish.
Price Target Insights
Based on the volume and open interest of these contracts, it seems that these whales have been eyeing a price range of $30.0 to $85.0 for Shopify over the past three months.
Examining volume and open interest can be a valuable tactic when trading options. This data helps track the liquidity and interest in Shopify’s options within a specific strike price. The following chart illustrates the changes in volume and open interest for calls and puts in the $30.0 to $85.0 strike price range for Shopify’s significant trades in the past 30 days.
[Chart displaying Shopify’s Option Volume and Open Interest over the Last 30 Days]
Most Notable Options:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| SHOP | CALL | SWEEP | BULLISH | 06/21/24 | $30.00 | $1.0M | 7.8K | 137 |
| SHOP | CALL | TRADE | NEUTRAL | 06/21/24 | $30.00 | $906.3K | 7.8K | 2.6K |
| SHOP | CALL | SWEEP | BULLISH | 06/21/24 | $30.00 | $664.2K | 7.8K | 4.9K |
| SHOP | CALL | SWEEP | BULLISH | 06/21/24 | $30.00 | $501.4K | 7.8K | 137 |
| SHOP | CALL | SWEEP | BULLISH | 06/21/24 | $30.00 | $207.1K | 7.8K | 2.4K |
Current Position of Shopify
With a trading volume of 12,457,954, SHOP is currently experiencing a slight decline of -0.63% at $64.44. RSI indicators suggest that the underlying stock may be approaching overbought conditions. The next earnings report is expected in 21 days.
Expert Opinions on Shopify
JMP Securities has downgraded its rating to Market Outperform, setting a price target of $70. Meanwhile, Jefferies has opted to maintain its Hold rating on Shopify, with a price target of $65.
Options Trading and Risk Management
While options trading carries more risk compared to stock trading, it also presents greater profit potential. Seasoned options traders mitigate this risk through continuous education, strategic entry and exit strategies, reliance on multiple indicators, and closely monitoring market conditions.