DailyPlay – Opening Trade (SHOP) – November 15, 2024

SHOP Bullish Opening Trade Signal

Investment Rationale

Shopify (SHOP) stock surged by 25% following the announcement of better-than-expected earnings and an optimistic forecast for the holiday season. We recently executed a bullish long calendar trade in SHOP ahead of the earnings report. The company’s strong financial performance has fueled significant upside momentum, boosting investor confidence. Shopify’s revenue growth exceeded analyst expectations, indicating continued momentum as the holiday shopping season approaches. Consequently, we are considering a longer-term bullish strategy as we head into the year’s end.

SHOP – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 3 SHOP Jan 17 $105/$125 Call Vertical Spreads @ $7.14 Debit per Contract.

Total Risk: This trade has a max risk of $2,142 (3 Contract x $714) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $714 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to bounce higher off recent support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 114

Stop Loss: @ $3.57 (50% loss of premium paid)

View SHOP Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View SHOP Trade