SHOP Options Contract Analysis and Yield Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: NASDAQ.COM
- Put Option Appeal: Selling a put option at a $100.00 strike price with a current bid of $9.50 allows investors to commit to purchasing shares at $100.00 while collecting a premium, effectively lowering the cost basis to $90.50, thus providing an attractive alternative for those interested in buying SHOP shares.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 9.50% return on the cash commitment, equating to an annualized yield of 36.89%, known as YieldBoost, showcasing the potential profitability of this strategy.
- Call Option Returns: Selling a call option at a $105.00 strike price with a current bid of $11.40, if investors buy shares at $104.16 and the stock is called away at expiration, would yield a total return of 11.75%, highlighting the profit potential of this approach.
- Volatility Comparison: The implied volatility for the put option is 65%, while for the call option it is 61%, compared to an actual trailing twelve-month volatility of 56%, indicating a heightened market expectation for SHOP's future volatility, necessitating careful risk-reward assessment by investors.
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Analyst Views on SHOP
Wall Street analysts forecast SHOP stock price to rise
31 Analyst Rating
18 Buy
13 Hold
0 Sell
Moderate Buy
Current: 115.030
Low
140.00
Averages
180.62
High
200.00
Current: 115.030
Low
140.00
Averages
180.62
High
200.00
About SHOP
Shopify Inc. (Shopify) is a Canada-based global commerce company. The Company provides essential Internet infrastructure for commerce, offering tools to start, grow, market and manage a retail business of any size. It provides platforms and services that are engineered and delivers a shopping experience for consumers online, in store and everywhere in between. Its software enables merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. The Company's Shopify platform provides merchants with a single view of their business across all of their sales channels and enables them to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing, all from one integrated back office. The Shopify's platform operates across 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shopify Stock Fluctuations: Shopify's stock has dropped 40% since last October, currently valued at $154 billion; despite pressures from slowing sales growth and rising interest rates, its Q1 revenue growth rate of 34% highlights its significance in the future of e-commerce.
- Nice's Customer Service Technology: Nice Ltd, with a market cap of $5.4 billion, derives only 14% of its cloud revenue from AI, yet its Q1 recurring revenue grew 66% year-over-year, showcasing its strong performance and growth potential in the customer service market.
- Viking Therapeutics' Drug Development: Viking Therapeutics is conducting phase 3 trials for its GLP-1 weight-loss drug VK2735, currently valued at $3.8 billion; analysts unanimously rate its stock as a strong buy with a target price of $95.40, reflecting confidence in its market potential.
- Investor Focus on Emerging Stocks: Despite overall market volatility, investor interest in Shopify, Nice, and Viking indicates optimism towards these growth stocks, particularly in the long-term growth prospects within the e-commerce and health sectors.
See More
Analysis of Shopify's Stock Price Decline
- Shopify's Stock Decline: Shopify's shares have fallen 40% since October, driven by slowing sales growth, rising interest rates, and potential threats from AI, although these concerns may be overstated.
- Nice Ltd's Customer Service Edge: Nice Ltd's platform facilitates over 20 billion interactions annually, and while AI accounts for only 14% of its cloud revenue, its annualized revenue has reached $345 million, indicating strong growth potential.
- Viking Therapeutics' Market Potential: Viking Therapeutics' VK2735 is in phase 3 trials and could disrupt the $200 billion obesity drug market, with analysts setting a target price of $95.40, representing a 200% upside from current levels.
- Cautious Investor Sentiment: Despite stocks remaining above late-March lows, many investors are on the sidelines due to concerns about a market pullback, particularly in the current economic climate, which challenges confidence in reinvesting.
See More
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- Shopify Stock Decline: Shopify's stock has fallen 40% since its October peak due to slowing sales growth and rising interest rates, yet its Q1 revenue growth rate of 34% indicates its significant role in the future of e-commerce.
- Nice's Growth Potential: Nice Ltd's cloud revenue grew 66% year-over-year, despite an overall growth of only 9%, and the acquisition of AI software company Cognigy enhances its customer service technology, likely driving future growth.
- Viking Therapeutics Drug Progress: Viking Therapeutics' VK2735 is in phase 3 trials, with an oral version expected to begin testing in the second half of the year; analysts remain optimistic with a target price of $95.40, suggesting a potential 200% upside from current levels.
- Market Reaction to AI: While AI poses threats to various companies, firms like Shopify and Nice are actively integrating AI to enhance service capabilities, demonstrating strategic decisions to maintain competitive advantages.
See More
Software Stocks Rally as Snowflake and Okta Report Strong Results
- Snowflake's Strong Performance: Snowflake saw a nearly 50% increase over four trading days following the holiday, announcing a $6 billion cloud and chip deal with Amazon, which reflects a surge in customer demand for AI tools and boosts the company's earnings guidance.
- Investor Confidence in Okta: Okta achieved a record 30% gain on Friday, with better-than-expected results indicating that businesses are ramping up investments in identity security tools to combat the rising threat of bot attacks as they transition to agentic AI.
- ETF Performance Surge: The iShares Expanded Tech-Software ETF rose 8% this week and is up 21% for May, marking its best monthly performance since October 2001, signaling a gradual recovery of market confidence in the software sector.
- Overall Industry Recovery: Companies like Atlassian and ServiceNow saw increases of 26% and over 20%, respectively, indicating a clear recovery trend in the software industry driven by partnerships with AI, despite Microsoft still being down nearly 7% year-to-date.
See More
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- Software Stock Rebound: Software stocks rebounded this week due to strong performances from Snowflake and Okta, with the iShares Expanded Tech-Software ETF rising 8% and closing May up 21%, marking the best monthly performance since October 2001, indicating renewed market confidence in the software sector.
- Snowflake's Stellar Performance: Snowflake's stock surged nearly 50% in the four trading days following the holiday, announcing a $6 billion cloud and chip deal with Amazon while raising guidance, reflecting a growing demand for AI tools among customers.
- Okta's Record Growth: Okta's stock jumped 30% on Friday, exceeding market expectations, with the CEO stating that businesses are investing more in identity security tools to tackle AI-driven security challenges, highlighting strong demand in the identity management market.
- Strong Performance from Other Software Firms: Atlassian rose 26%, ServiceNow surged over 20%, and cloud infrastructure giants Oracle and Microsoft increased by 16% and nearly 8%, respectively, although Microsoft remains down nearly 7% year-to-date.
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- New Investment Opportunities: I am looking into Axon, Reddit, and Shopify, which demonstrate strong growth potential in their respective fields, particularly in technology and e-commerce, potentially providing new revenue sources for my portfolio.
- Market Dynamics Analysis: The stock prices mentioned were based on the trading day of May 26, 2026, highlighting the significant impact of changing market conditions on investment decisions and emphasizing the necessity of timely strategy adjustments.
- Subscription and Engagement: Encouraging viewers to subscribe to the channel and click the special offer link indicates an intention to build an interactive relationship with the audience, which may also support future content creation.
See More
