Shopify Stock Sees Unusual Put Activity as Bears Target $117 and $123 Strikes
By TrendSpider Editor
With both large put contracts set to expire next Friday, July 17, 2026, the setup implies these traders are making a short-duration directional bet that SHOP moves lower within the next week. At the current price of $123.14, the $123 put is effectively at the money, meaning even a modest move lower
Shopify Stock Sees Unusual Put Activity as Bears Target $117 and $123 Strikes
Shopify Inc. is drawing attention in the options market Friday after a cluster of unusual contracts hit the tape, with bearish put activity dominating the flow and generating over $1 million in total premium. SHOP shares are essentially flat on the session, slipping just 0.02% to $123.14, but the options positioning suggests some traders are bracing for near-term downside. The stock is trading well off its 52-week high of $182.19 and closer to the lower end of its $94 to $182.19 annual range, adding weight to the bearish read on today's flow.Key Drivers of the SHOP Stock Move
- Main Catalyst: Four unusual options contracts were flagged today totaling $1,064,039 in combined premium. Three of the four contracts were puts, including a large $572,000 put at the $123 strike expiring July 17, 2026, and a $428,315 put at the $117 strike also expiring July 17, 2026. A smaller put at the $195 strike expiring September 18, 2026 rounded out the bearish side, while the only call was a $110 strike expiring August 14, 2026.
- Bull Case: The lone call contract at the $110 strike expiring August 14, 2026 is currently in the money, signaling at least one trader sees SHOP holding above that level through mid-August. The stock remains well above its 52-week low of $94, which provides a technical floor for longer-term bulls.
- Bear Case: The two largest contracts by premium are puts expiring in just one week on July 17, 2026. The $123 put carried an open interest increase of 7,647% with 2,600 contracts traded, and the $117 put saw an open interest surge of 2,406% with 5,198 contracts traded. That volume relative to open interest signals these are almost certainly new positions, not hedges on existing inventory, and the sheer size of the premium deployed makes this hard to dismiss as noise.
With both large put contracts set to expire next Friday, July 17, 2026, the setup implies these traders are making a short-duration directional bet that SHOP moves lower within the next week. At the current price of $123.14, the $123 put is effectively at the money, meaning even a modest move lower puts it in the money. The $117 strike requires a more meaningful decline of roughly 5% from current levels to become profitable at expiration. The near-term expiry leaves little room for error, suggesting these are high-conviction trades rather than longer-dated hedges. Traders will want to watch how SHOP behaves heading into the weekend and early next week for any confirmation of follow-through selling pressure.
SHOP Unusual Options Activity
- Contract 1: CALL, $110 strike, expires August 14, 2026 | Volume: 16 | Open Interest Change: 1,600% | In the Money
- Contract 2: PUT, $117 strike, expires July 17, 2026 | Volume: 5,198 | Open Interest Change: 2,406% | Out of the Money
- Contract 3: PUT, $123 strike, expires July 17, 2026 | Volume: 2,600 | Open Interest Change: 7,647% | Out of the Money
- Contract 4: PUT, $195 strike, expires September 18, 2026 | Volume: 4 | Open Interest Change: 1,000% | In the Money
Total premium across all four contracts came in at $1,064,039. Puts accounted for three of four contracts and the overwhelming majority of the premium deployed. The net directional lean of today's unusual flow is clearly bearish.
SHOP Seasonality
Mid-July has historically been an active period for Shopify as the market begins to position ahead of the company's second-quarter earnings report, which typically falls in late July or early August. Elevated short-dated put activity in the week or two before an expected earnings window is a pattern worth monitoring.
SHOP Relative Performance
SHOP is trading at $123.14, down just 0.02% on the session, making it effectively a flat performer on Friday. With the stock sitting roughly 32% below its 52-week high of $182.19 and about 31% above its 52-week low of $94, SHOP occupies the lower half of its annual range, a position that may be encouraging the bearish options positioning visible in today's flow.
More on SHOP
- Shopify Surges 7.34% as SHOP Stock Breaks Out to $122.56
- Shopify Sees $1.1M in Unusual Options Activity as Bulls Target $125 Call Strike
- Shopify Surges 5.03% as Shares Break Above Prior Session High
- Shopify Surges 6.09% as SHOP Stock Breaks Out of Recent Trading Range
- Shopify Bears Emerge With $2.35 Million Put Position Near 52-Week Lows
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