Shopify stock is on the rise after an upgrade from Redburn Atlantic to "buy"
Shopify Inc (NYSE:SHOP) stock is up 2.4% at $75.32 at last check, after an upgrade from Redburn Atlantic to "buy" from "neutral," with a price-target hike to $99. The firm cited social e-commerce growth, as the company continues to integrate into social media platforms in a way that drives sales.
SHOP has had a volatile few months, dropping close to the $50 level before its massive post-earnings bull gap in early August. Since the start of the year, the equity is down just 3.9%, though pressure is emerging just below its year-to-date breakeven level at $77.
Call traders are chiming in after the bull note. So far, 26,000 calls have crossed the tape, which is double the call volume typically seen at this point and far outweighing the 3,599 puts traded. The September 75 call is the most active contract, but positions are being opened at the weekly 9/27 75-strike call.
These options traders are in luck, as premium can be had for a bargain at the moment. This is per SHOP's Schaeffer's Volatility Index (SVI) of 38%, which ranks in the 9th percentile of its annual range.