Shopify will announce its third-quarter report before the open tomorrow
Shopify Inc (NYSE:SHOP) stock is on the rise today ahead of the company's third-quarter earnings report, due out before the open tomorrow, Nov 12. Analysts expect the Canada-based e-commerce name to post earnings of 27 cents per share and revenue of $2.11 billion.
At last glance, SHOP was up 3.4% at $89.87. The shares earlier jumped above their February peak, hitting a fresh 52-week high.
Looking at the past two years, SHOP has a history of outsized post-earnings moves, including a 17.8% pop this past August. This time around, the options pits are pricing in a next-day swing of 22%, which is much larger than the 16.8% move the stock has average over the last eight quarters.
Options traders are targeting Shopify stock ahead of the event. So far, 125,000 calls and 119,000 puts have crossed the tape, which is eight times the average daily options volume. The November 75 put is the most popular contract, where new positions are being opened.
Leading up to today, SHOP's options pits have been more bullish. This is per the stock's 10-day call/put volume ratio of 3.15 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 80% of readings from the past year.