Signal: Shopify Stock Could Build on Post-Earnings Pop

Shopify Inc (NASDAQ:SHOP) stock is trading 2.3% higher at $147.42 this afternoon, extending yesterday's impressive post-earnings bull gap of nearly 18% and heading for a third-straight gain. The e-tailer posted a better-than-expected second-quarter results and strong revenue guidance for the current quarter, triggering a slew of price target hikes from analysts.

During yesterday's surge, SHOP crossed above former pressure at the 200-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, this “crossover” event has happened three other times over the last 10 years.

SHOP was higher one month later 67% of the time after these signals, averaging a 7.6% gain. From its current perch, a move of this magnitude would put the shares above $158 -- its highest mark since late January.

Options traders have been much more bearish than usual, per the stock's 50-day call/put volume ratio of 1.15 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 98th annual percentile. Should this sentiment begin to unwind, it could trigger more tailwinds for the shares.

Options are looking affordably priced as well. Specifically, Shopify stock's Schaeffer’s Volatility Index (SVI) of 57% stands in the 31st percentile of its annual range.