The June 65 call is the most popular options contract today
Shopify Inc (NYSE:SHOP) is trending on social media site StockTwits today, after the online services stock hit a 52-week high of $65.62. Over the weekend, Jefferies raised its price target to $65 from $44, keeping its “hold” recommendation. At last glance, SHOP was up 6.2% to trade at $65.19.
There is plenty of room for further bull notes that could send SHOP even higher. Of the 39 analysts in coverage, 22 carry a “hold” or worse rating, while the 12-month consensus price target of $61.67 is a 5.4% discount to current levels.
So far today, 147,000 calls have crossed the tape, in comparison to 47,000 puts, with new positions being opened at the most active contract, the June 65 call. Options bulls have been blasting SHOP of late, per the stock’s 10-day call/put volume ratio of 5.77 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 98% of readings from the past year.
Options are attractively priced at the moment too, per Shopify stock’s Schaeffer’s Volatility Index (SVI) of 50%, which ranks in the 11th percentile of its annual range.
Image and article originally from www.schaeffersresearch.com. Read the original article here.