There may be a trade opportunity in this e-commerce stock. How to play it with options

With a surprisingly strong labor market, consumer spending has remained resilient and e-commerce stocks like Shopify (SHOP) present attractive opportunities. Shopify has strategically positioned itself to take market share from e-commerce giants like Amazon, capitalizing on its focus on empowering small to medium-sized businesses to compete in the digital marketplace. This signals Shopify’s competitive edge in capturing a greater share of the e-commerce market. Recently, SHOP has broken out above a trading range of $57-67 and after a brief pullback, it has bounced higher off the $67 support level. This price action indicates strength and suggests that the stock has found a strong base from which it can continue higher. With the stock now trading above its breakout level and positive momentum continuing to build, the chart supports further upside. SHOP trades at 8 times EV-Forward Revenue, which is in line with its industry. And arguably, Shopify’s valuation is undervalued by its remarkable growth potential. Shopify is expected to grow EPS at 185% over the next 3-5 years, compared to the industry average of 14%. Its expected revenue growth of 22% also surpasses the industry average of 9%, showing Shopify’s ability to expand its business at a much faster rate than its peers. Additionally, despite its fast growth, Shopify’s has been able to maintain 16% net margins, in line with the industry average. The trade: To express a bullish outlook on Shopify, I’m suggesting selling the Nov 22, $82/74 Put Vertical @ $3.10 Credit. This structure entails: Selling the Nov 22 $82 Put @ $5.85 Buying the Nov 22 $74 Put @ $2.75 View this link in OptionsPlay with updated pricing. This strategy allows for a maximum reward of $310 per contract if SHOP is above $82 at expiration, with a maximum risk of $490 if SHOP is below $74 at expiration. The breakeven price on this trade is $78.90, meaning you profit if SHOP stays above that level at expiration. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.