Options Traders Target Struggling Shopify Stock

The stock completed a 10-for-1 stock split in late June

Deputy Editor
Jul 11, 2022 at 3:16 PM
facebook X logo linkedin

Shopify Inc (NYSE:SHOP) is down 9.7% to trade at $32.13 at last glance, as the e-commerce name succumbs to pressure on the tech sector today. SHOP's 10-for-1 stock split went into effect on June 28, and traders are considering whether or not the underperforming security has hit a bottom. Amid the stock split news, Shopify stock has seen a surge in options activity. 

More specifically, SHOP appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of names that have attracted the highest weekly options volume within the past two weeks. Per this data, 1,547,491 calls and 835,138 puts exchanged hands in this two-week period. The most popular contract in this time was the 7/8 35-strike call. 

MAO July11

On the charts, the stock has been middling between the $30 and $40 levels since mid-May, though it did secure a July 5, two-year low of $29.72. The 50-day moving average has pressured shares lower for most of the year thus far, though the security's relative strength index (RSI) of 19.6 stands firmly in "oversold" territory, meaning a short-term bounce is overdue. Year-to-date, SHOP is down 76.6%. 

SHOP July11

For those looking to weigh in, options look like a good move at the moment. According to its Schaeffer's Volatility Scorecard (SVS) tally of 85 out of 100, Shopify stock has consistently realized bigger returns than options traders have priced in over the last 12 months. 


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