Benzinga | Jan 19, 2022 03:04PM EST

This Is What Whales Are Betting On Shopify

Someone with a lot of money to spend has taken a bearish stance on Shopify (NYSE:SHOP).

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with SHOP, it often means somebody knows something is about to happen.

So how do we know what this whale just did?

Today, Benzinga's options scanner spotted 93 uncommon options trades for Shopify.

This isn't normal.

The overall sentiment of these big-money traders is split between 48% bullish and 51%, bearish.

Out of all of the special options we uncovered, 67 are puts, for a total amount of $3,248,316, and 26 are calls, for a total amount of $1,318,601.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $325.0 to $1700.0 for Shopify over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Shopify's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Shopify's whale activity within a strike price range from $325.0 to $1700.0 in the last 30 days.

Shopify Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

Symbol PUT/ Trade Sentiment Exp. Strike Total Trade Open Volume CALL Type Date Price Price InterestSHOP CALL SWEEP BULLISH 01/21/ $1100.00 $160.5K 1.0K 1.6K 22SHOP CALL TRADE BEARISH 01/20/ $720.00 $126.0K 50 3 23SHOP CALL TRADE NEUTRAL 07/15/ $1060.00 $90.0K 3 6 22SHOP PUT TRADE BULLISH 01/21/ $1470.00 $77.0K 27 3 22SHOP PUT TRADE BULLISH 09/16/ $1400.00 $76.4K 403 32 22

Where Is Shopify Standing Right Now?

* With a volume of 1,425,869, the price of SHOP is up 0.56% at $1060.55.

* RSI indicators hint that the underlying stock may be oversold.

* Next earnings are expected to be released in 28 days.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.