SHOP - low of bearish engulfing candle broken - PUTSShopify is getting attention for its ultra-rich valuation. Stochastic %K dipped lower on Monday, compared to June 24, and %D has crossed below RSI. Since stock traded below the low of Monday's bearish engulfing candle (with volume), I think today's buying will turn over as more people take profits.
I bought 7/17 850 puts for 2.90. Volume is low on these options, and risk is high. Reward to risk is also high, so if this trade makes you uncomfortable, ask yourself if you can be content buying one contract (using less than $300 capital)?
