DROPIFY
SHOP can realistically fall by half in 75 days. I am thinking 75 days because it's average "drop" time is half it's "gain" time---also technically it is looking like a top after running up over 150% in 5 months. Inspiration for this is NVDA. NVDA dropped approx. 55% in 50 days last year. I previously called the NVDA tank. The FUNDAMENTAL reason why I believe SHOP is going to fall is Price to Sales. It is trading at 40x sales which is complete insanity. Facebook would be the prime buyer of this company but at 440B it definitely is not worth it.
By the first week of August SHOP is $135
For the big risk takers out there--19 JUL 19(51 days) puts at 165 / 200 / 220--can yield handsome returns. Risk:Reward is pretty stupid. Buying 1 contract each is 22x money on average and the capital risk is approx. $850. IF
SHOP tumbles by the anticipated 50% then the reward is $19,000. May sound lunatic but it is completely possible and has happened in the past multiple times with stocks multiple times. Again, NVDA dropped approx. 55% in 50 days last year.
**This post is not advice just me having an idea and running with it**
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.