Special Offer Ends Soon!

“Underground” System Tracks 40% of Daily Wall St. Money

Millionaire Trader, Taylor Conway, creates Bloomberg scanner to track “Dark Pool” activity, opening the door for huge potential returns.

Learn how to position yourself for profit, before the markets move!

On the watch: Shopify (SHOP) is building a base

Jeff BishopJeff Bishop ·

The back story: Shopify Inc. (SHOP) is becoming a huge name-brand in the Internet economy; it seems like every retail site you look at is powered by Shopify, and the company has the revenue growth to back that up. The stock, however, got ahead of itself recently and was in the $120 range; just as I thought it looked like a short opportunity, an article came out and the stock got knocked down into the mid-$90s meaning I missed my move.

What’s happening now: At this point, Shopify still has sellers who want to get out, but the price isn’t dropping any more. With a rabid core group of traders who love the stock, it is starting to build a base here; I don’t think it reclaims old highs any time soon, but I do think it gets back to $100 in short order.

How I’m playing it: I have 150 Oct. 20 $95 call options on SHOP, and if the stock doesn’t bounce by Tuesday or Wednesday, I most likely will more out to a more-distant expiration date. If the stock were to drop down to $92, I’d buy more; I’ll stop out if the stock breaks below $90, which is really close to the recent lows.

This is a case where I think it makes more sense to play options, rather than the stock. Options are less than $2 — so there’s $2 risk in the trade – and could easily double with a move toward $100, so this is a short-term high-reward, low risk trade.


   Jeff Bishop is lead trader at TopStockPicks.com. He runs short-term trading strategies, primarily using options and leveraged ETFs.  At the time this was published on RagingBull.com, he held 150 Oct. 20 $95 call options on SHOP and was planning to trade that position as described in this commentary.

Trending Now

Bull or Bear Market….It Doesn’t Matter

Kyle Dennis’ new, 5 min strategy is poised to double account sizes weekly! “I got out of GE trade at 379% $0.16-$0.77, thanks Kyle!” Said client Lance P. Check out the free training that started it all. (View Free Training)

SuperNova Service Leading Clients to 5-Figure Profits Consistently

“BOOM!!! Booked another $13,985 in profits on my long position $VMNGF. Great report came out premarket. Thanks Jeff at SuperNova for teaching me to make $$$ in the market.” Said Todd V. Jeff Williams is helping transform small accounts daily. Don’t miss his free walkthrough. (Watch Now)

Jeff Bishop, RagingBull.com Co-Founder, “Trading My Strategy Takes A Few Minutes a Day!” 

“Jeff, I have to say I was a little gun shy, but I bought the lifetime service (to Bullseye Trades) Friday night. First trade with your service…in LULU, 205 Calls at $4.70. (I) was going to be away from all internet connections for the next 3 days. It hit my sell price at $6.25 ;)” said James W.    (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles