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Barchart
Barchart
Mark R. Hake, CFA

Shopify Stock Is Still Off Its Highs and Looks Cheap - Selling Short OTM Puts Works

SHOP Shopify AnaChart Shopify Inc Barchart

Shopify Inc. (SHOP) stock is still well off its 3-month highs, at $63.05 in morning trading on Monday June 10. This is still down 18.6% from $77.37 on May 6 before its May 8 earnings release. That provides an opportunity for value investors.

For example, SHOP stock could be up to $80 per share, or over 27% more based on its free cash flow. Shorting out-of-the-money puts as a disciplined way to buy in makes sense.

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