Deep-pocketed investors have taken a bearish stance on Shopify BUSINESSand that’s something market participants shouldn’t ignore. Our monitoring of public options records at Benzinga revealed this significant move today. The identities of these investors remain unknown, but such a significant move in SHOP usually indicates that something big is about to happen.
We gleaned this information from our observations today, when Benzinga’s Options Scanner highlighted 15 exceptional options activities for Shopify. This level of activity is unusual.
The general sentiment among these heavyweight investors is divided: 33% are optimistic and 66% are pessimistic. Among these notable options are 7 puts totaling $519,210 and 8 calls totaling $482,007.
Expected price movements
When analyzing the volume and open interest in these contracts, it appears that major players were targeting a price window of $60.0 to $85.0 for Shopify last quarter.
Volume and open interest development
When trading options, it is useful to look at volume and open interest. This data can help you track the liquidity and interest in Shopify options for a given strike price. Below we can observe the evolution of volume and open interest of calls and puts, respectively, for all whale trades of Shopify within a strike price range of $60.0 to $85.0 over the last 30 days.
Shopify Option Activity Analysis: Last 30 Days
Notable options activity:
| symbol | PUT/CALL | Trading type | Feeling | Expiry date | Questions | bid | Price | Exercise price | Total trading price | Open interest | volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BUSINESS | SET | SWEEP | BEARISH | 17.01.25 | 13.5 USD | $13.15 | 13.5 USD | 85,00 € | 274,0 thousand USD | 3.1 thousand | 381 |
| BUSINESS | CALL | SWEEP | BEARISH | 16.01.26 | 18,00 € | $17.7 | $17.7 | 75,00 € | 148.6 thousand USD | 3.4K | 89 |
| BUSINESS | CALL | TRADE | BULLISH | 17.01.25 | $4.65 | 4.5 USD | 4,60 € | 85,00 € | 69.9 thousand USD | 7.5 thousand | 156 |
| BUSINESS | CALL | SWEEP | BEARISH | 30.08.24 | 1,09 € | $1.08 | $1.08 | 76,00 € | 54,000 USD | 1,0k | 29 |
| BUSINESS | CALL | SWEEP | BEARISH | 21.03.25 | 6,90 € | $6.85 | $6.85 | 85,00 € | 50,000 USD | 1.5 thousand | 94 |
About Shopify
Shopify offers an e-commerce platform aimed primarily at small and medium-sized businesses. The company has two segments. The Subscription Solutions segment enables 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.
Given the recent options history for Shopify, it is now appropriate to focus on the company itself. We want to examine its current performance.
The current market status of Shopify
- With a current trading volume of 3,717,474, the price of SHOP has fallen by -0.05% and is now trading at $74.51.
- RSI readings suggest that the stock may be overbought at the moment.
- The results are expected to be published in 73 days.
Options trading carries greater risks but also offers the potential for greater rewards. Experienced traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and considering market dynamics. Stay on top of the latest options trades for Shopify with Benzinga Pro and get real-time alerts.
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