Shopify Stock Sells Off After Citron Highlights 'Major Facebook Problem'

Put options have been unusually popular on Shopify

Mar 26, 2018 at 11:50 AM
facebook X logo linkedin


Shopify Inc (NYSE:SHOP) is plummeting today, last seen down 5.8% at $133.40, after Citron Research released a report detailing the company's reliance on Facebook data. Citron believes the stock should trade back down at $100, as it believes Facebook will soon begin restricting the data it relies on -- describing it as a "major Facebook problem" in a tweet this morning. As such, put volume is surging on SHOP stock.

So far today more than 11,000 put options have traded, compared to an average daily volume of just 3,800. Traders appear to be deploying some sort of spread strategy using the weekly 3/29 141- and 142-strike puts. The May 130 put is also popular, and traders are likely buying to open positions to bet on a breach of the $130 level. Overall, SHOP's single-day put/call ratio has jumped to 3.13, showing more than three puts have traded for every call.

Puts were unusually popular even before today's Citron news, based on Shopify's 10-day put/call volume ratio of 3.99 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This read ranks just 1 percentage point from an annual high, indicating a very strong demand for put buying in recent weeks.

Despite the big drop today, the equity remains up almost 93% during the past year, touching an all-time high of $154.82 less than a week ago. Plus, Shopify stock may be finding support at the 50-day moving average, located just below its current perch. The shares haven't closed below this trendline in 2018.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI