Shopify is a company that helps small businesses sell their things online or in different places like stores and social media. Some big people with lots of money are betting that Shopify's price will go down, so they buy options to make money if it happens. They are not many compared to those who think the price will stay the same or go up, but their bets are bigger. The most popular prices these big people are aiming for are between $65 and $130. Read from source...
1. The title is misleading and sensationalized. A surge in options activity does not necessarily imply a spotlight on Shopify, but rather an increase in trading volume or value for the stock. The article should have clarified this point more clearly.
2. The author's choice of words to describe the investors' stance is subjective and vague. What does it mean to be "bearish" or "bullish"? Are they referring to the overall market sentiment, the expectations for Shopify's performance, or both? A more precise and objective language would have been preferable.
3. The calculation of the percentage of bullish and bearish trades is flawed. It seems to be based on the number of trades rather than the underlying contracts. For example, if one investor opens 2 call options and 1 put option, that would count as 1 bullish trade and 1 bearish trade, even though there are only 2 actual contracts involved. A more accurate way to measure the sentiment would be to divide the number of calls by the total number of trades and do the same for puts, then compare the two ratios.
4. The price target range is also unclear and arbitrary. What criteria were used to determine these values? Are they based on any technical analysis, fundamental analysis, or external factors such as news or events? A more transparent and rational explanation would have been helpful.