September 21, 2023
Sell your SHOP January 62 Calls.
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
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 |
| Expiration | January 19, 2024 |
| Net Price | 10.89 |
| Strike | 62 |
