Trending...
- California: Three years after the end of Roe, Governor Newsom, First Partner sound the alarm on Trump's "Big, Beautiful" plan to defund Planned Parenthood - 121
- Ascent Solar Technologies Enters Collaborative Agreement Notice with NASA to Advance Development of Thin-Film PV Power Beaming Capabilities: ASTI - 106
- Fact check: Claims swirling on California gas prices
SAN FRANCISCO - Californer -- Shopify is expected to report earnings on Wednesday, July 27.
The options market is not looking at this event favorably, with the stock down over 60% since their last earnings release. In fact, traders have been buying put options and put option spreads betting that the stock will further decline in price.
The options market is usually a good indicator of how investors feel about a company's prospects. As you know, when an investor buys a call option he or she pays a premium for the right to buy stocks at a certain price by a certain date. If the stock price moves higher than what was expected by the investor then it would be more expensive for them to exercise their call option and buy shares of the stock at that price. On the other hand, if the investor feels the shares will fall below his purchase price then he should sell those shares short rather than buy them long because then he can make money when prices go down instead of up!
More on The Californer
Why pay attention to options activity?
Investors often trade options to hedge their bets. However, options are a good indicator of market sentiment, especially when large blocks are traded. It's important to note unusual trades, often at the asking price, because they're a good gauge of expectations among institutional investors with extensive capital. With Optionsonar's state-of-the-art machine learning and artificial intelligence, this process is incredibly easy for retail investors to discover unusual options.
The options market is not looking at this event favorably, with the stock down over 60% since their last earnings release. In fact, traders have been buying put options and put option spreads betting that the stock will further decline in price.
The options market is usually a good indicator of how investors feel about a company's prospects. As you know, when an investor buys a call option he or she pays a premium for the right to buy stocks at a certain price by a certain date. If the stock price moves higher than what was expected by the investor then it would be more expensive for them to exercise their call option and buy shares of the stock at that price. On the other hand, if the investor feels the shares will fall below his purchase price then he should sell those shares short rather than buy them long because then he can make money when prices go down instead of up!
More on The Californer
- California: TODAY: Governor Newsom to sign historic bills to create more housing and infrastructure – faster than ever before
- Can This Simple Test Predict How Long You'll Live?
- AI Performs Virtual Tissue Staining at Super-Resolution
- Online Distribution of the Summer 2025 Diamond Certified Directory Update Begins
- California: Governor Newsom proclaims Immigrant Heritage Month 2025
Why pay attention to options activity?
Investors often trade options to hedge their bets. However, options are a good indicator of market sentiment, especially when large blocks are traded. It's important to note unusual trades, often at the asking price, because they're a good gauge of expectations among institutional investors with extensive capital. With Optionsonar's state-of-the-art machine learning and artificial intelligence, this process is incredibly easy for retail investors to discover unusual options.
Source: Optionsonar
Filed Under: Financial
0 Comments
Latest on The Californer
- Long Beach to Conduct Annual Summer Recess for City Council Meetings During July
- Plan to Launch Silo Technologies' Cybersecurity Pilot Program for Ultimate Nationwide Deployment via Exclusive Partnership: Stock Symbol: BULT
- Robert Michael & Co. Real Estate Team Celebrates Industry Recognition and Showcases Premier Central Florida Listings
- Montessori Stoppani Partners with Lifetime Montessori School
- Cymbiotika Celebrates 2025 Great Place To Work Certification™
- Long Beach: LA28 Announces Finalized Sailing Venue Plan for 2028 Olympic Games
- Individual Software Announces New Versions of its Four Typing Programs in 2025
- Britt Michaelian Brings Transformative Art & Wellness to The Ecology Center's Peace Dome
- California: Governor Newsom urges safety this Fourth of July after 600,000 pounds of illegal explosives seized
- AI-Based Neurotoxin Countermeasure Initiative Launched to Address Emerging National Security Needs: Renovaro, Inc. (N A S D A Q: RENB)
- The Naturist World Just Shifted — NaturismRE Ignites a Global Resurgence
- Mental and Emotional Self-Management, Practical Tools for Trauma-Informed Stress Management
- CGI+ Sells Multifamily Development Site in Los Angeles' South Bay to JPI for $40 Million
- MicroStrategy Incorporated (MSTR) Investors Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit
- Alten Construction awarded Encinal Junior and Senior High School project
- $796,000 in Q2 Revenue Marks Highest Earnings to Date on 3 Trailing Quarters of Profitability in Multi-Billion Homebuilding Sector: Stock Symbol: IVDN
- Cybersecurity is THE Hot Market Sector; Revenues, Earnings & Profit matter; Only 33 Million Shares + a Huge Short Position Equal an Undervalued Stock
- Despite Global Calls for a Ban, US Child Psychiatry Pushes Electroshock for Kids
- Franco Polished Plaster Celebrates 35 Years of Bringing Walls to Life in the UK
- Spartan & Guardians Partner with Guitar Legend Buckethead to Support Global Child Rescue Efforts