The article talks about how some people are betting a lot of money on a company called Shopify. They think the price of this company's stock will go up or down in the future, so they buy something called options that let them make more money if their prediction is right. The article also tells us what other people think about Shopify and how it helps small businesses sell things online. Read from source...
- The article does not provide a clear thesis or argument about why smart money is betting big in SHOP options. It seems to be more of a promotional piece than an informative one.
- Shopify is a fast-growing e-commerce platform that offers solutions for small and medium-sized businesses. It has two segments, subscription solutions and merchant solutions, which provide various services to help merchants conduct e-commerce across different platforms.
- The company's stock price has been volatile over the past year, ranging from $45 to $160 per share. This presents both opportunities and risks for investors who want to trade options on Shopify.
- Options trading involves greater risks than traditional stock trading, as it allows investors to buy or sell an underlying asset at a specified price (strike price) within a certain time frame (expiration date). This creates leverage and exposes investors to unlimited losses if the market moves against their position.
- Smart money is betting big in Shopify options, as evidenced by the large volume and open interest of call and put options at different strike prices over the last 30 days. Some of the largest trades observed include buying thousands of contracts at $45, $70, and $90 strikes, as well as selling similar numbers of contracts at $60, $80, and $100 strikes.
- These trades suggest that smart money traders are bullish on Shopify's future performance and expect the stock price to rise above the current level ($74 per share). They may also be hedging their existing positions or preparing for earnings announcements, which could trigger large moves in the stock price.
- Investors who want to follow these trades and participate in Shopify's options market should pay attention to the development of volume and open interest of call and put options within a strike price range of $45.0 to $90.0 over the next few weeks. They should also monitor the company's fundamentals, such as revenue growth, earnings per share, valuation, and competitive advantages. Additionally, they should consider their own risk tolerance, investment horizon, and personal preferences before entering any options trades on Shopify or any other stock.
- Based on the information provided in the article, a possible investment recommendation for an aggressive investor who wants to bet on Shopify's upside potential is to buy a call option with a strike price of $90 and an expiration date of June 17, 2022. This would give them the right to purchase shares of Shopify at $90 per share until that date, which could yield significant profits if the stock price rises above $90 by then. However, this trade also entails a high risk of loss if the stock price falls below