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Buy Call SHOP

September 21, 2023
Sell your SHOP January 62/90 Bull Call Spread.

The market is under pressure again today following the Federal Reserve event. We are going to take advantage of this weakness to buy the stock that has attracted the steadiest bullish option activity, Li Auto (LI), while selling two positions (FCX/SHOP) that are not working. Let’s dive in.

Next up is SHOP, which we locked in partial profits on a third of the position several months ago then watched the stock fall, then rally, and now fall again.

Big picture, the stock looks suspect, and with better looking growth stocks in the portfolio and the addition of LI, which should move with growth, SHOP has become a Sell.

To execute this trade you need to:
Sell to Close the SHOP January 62 Calls

Buy to Close the SHOP January 90 Calls.

June 26, 2023
Adjust Existing Position: Against SHOP January 62 Calls, Sell the January 90 Call (exp. 1/19/2024) for $2.80 or more.

SHOP continues to look great, and I like our January 62 call position. That being said, the sellers have started to show up in the market in the last week. Because of that, let’s reduce our premium at risk in SHOP by selling a far out-of-the-money call against our 62 call.

To execute this trade you need to:
Sell to Open the SHOP January 90 Call

After this call sale, our new position will be a traditional bull call spread that looks like this:
Long SHOP January 62 Call
Short SHOP January 90 Call

The ideal spot for this bull call spread is at 90 or above on January expiration, as the spread would be worth $28.

This call sale will be a mistake if SHOP trades well above 90 on January expiration … however, that is a scenario we can deal with as our trade will be at a profit of approximately 200%.

June 12, 2023
Sell a Third of Existing Position: Sell a Third of your Shopify (SHOP) January 62 Calls for $13 or more.

Very quickly after our call buy on Friday SHOP has broken out to a new recent high. Let’s take advantage of this stock strength to lock in a quick profit of approximately 20%, and then let the balance run for much greater profits.

To execute this trade you need to:

Sell to Close a Third of your SHOP January 62 Calls

June 9, 2023
Buy the Shopify (SHOP) January 62 Calls (exp. 1/19/2024) for $12 or less.

As I wrote yesterday, nearly every day since the company blew away earnings estimates, traders have been actively buying Shopify (SHOP) calls, and that trend has not stopped today. Here is today’s biggest call purchase:

Buyer of 10,000 Shopify (SHOP) July 70 Calls for $1.50 – Stock at 61

And while the stock has mostly chopped around in the 58-64 range, the call buying activity, both in the short term and longer term, is just too strong to pass up. For that reason, I’m adding SHOP to the portfolio today.

To execute this trade you need to:
Buy to Open the SHOP January 62 Calls

The most you can lose on this trade is the premium paid, or $1,200 per call purchased.

The risks I see in this trade are general market risks, which is definitely a worry as the market has been on a nice run.

That being said, I like the way SHOP looks, and the option activity is red hot, so I am going to add January calls to the portfolio today.

Position (Original)
SHOP January 62 Call
Position Strategy
Buy Call
Opened Date
June 9, 2023
January 19, 2024
Net Price
Jacob Mintz is a professional options trader and editor of Cabot Options Trader. Using his proprietary options scans, Jacob creates and manages positions in equities based on unusual option activity and risk/reward.