Buying SHOP call contracts.
Shopify’s e-commerce platform is growing quickly, allowing new businesses to set up shop. This is an important area of the economy given the surging number of new business formations.
The stock has been a high-flyer this year but the recent volatility in the market caused SHOP to pull back to it’s 200-day average. The stock has found support in this area in the past and this looks like another point where bulls could come in and support this name. In short, it’s a good risk/reward spot to set up a speculative trade. Plus, having some bullish exposure helps offset our risk of a snap-back rally given our profitable short positions.
- Buy (to open) 1 SHOP January 21st $1,300 Call
- Limit $160 or less
- The new position will represent roughly 9.5% of our Spec Model capital
- 11:47 Executed
- Bot 1 SHOP Jan 21st $1,300 Call @ $148