TRADER’S TRIO SPECIAL

(BETTER THAN A BAKER’S DOZEN!)

BUY THREE MONTHS OF WEEKLY OPTIONS TRADING MEMBERSHIP FOR $297 AND GET A FOURTH MONTH FREE!


Payments processed safely and securely through Paypal.

(Conditions Apply)

Search this site:



Square Stock Price On The Move Upwards!

and, "Weekly Options Members” Make
108% Potential Profit In 24 Hours!
More to Come?


April 11, 2021

Square stock price is moving upwards vaulting 14% to $261.65 last week, with above-average volume in the last three days.

And, “Weekly Options Members” managed to gain a potential profit of 108% in 24 hours trading days.

More upwards movement is expected, and for those that have exited the trade, a new trade may be considered.


GET YOUR FREE WEEKLY OPTIONS USA TRADING NEWSLETTER



Square Inc (NYSE:SQ)

The Actual Recommended Trade…..

** OPTION TRADE: Buy SQ APR 23 2021 255.000 CALLS at approximately $6.00.

 (actually bought for $7.60)

The Profit Explained…..

Weekly Options Members” entered a Square trade on Thursday, April 08, 2021 for $7.60 at the market opening.

The stock price started its upward movement and continued to do so after the market opened the next day.

At 10:20am Friday, April 09, 2021 the price of the option had hit $15.80 – a nice profit of 108%.

TOTAL PROFIT FOR THE DAYS TRADING IS 108%

Prelude.....

The stock market rally is rewarding the optimism trader, who is willing to take advantage of this market rally, which appears to be in good health.

And Square is one such stock to take advantage of during this rally. Not only because of its acquisition of Tidal and aggressive investments in Bitcoin, but also Square has the opportunity to rapidly become a one-stop-shop for financial services in a huge, underserved market by utilizing customer data in a way big banks can't.

Why The Trade Recommendation On Square?

The Major Catalysts for This Trade.....

1. The Chart.....

Square’s stock lost over 32% of its value between Feb. 16 and March 5 following a consolidation period on the Nasdaq 100.

Since hitting a temporary bottom of $191.68, Square’s stock also eased into a consolidation pattern and on Tuesday broke bullish.

On Wednesday morning, option traders saw signs of bullish follow-through on the chart and bought a large amount of call sweeps.

Although Square’s stock has been trading in a bearish descending triangle since reaching an all-time high of $283.12, a bullish inverted head-and-shoulder pattern within the descending triangle overrode the bearish pattern.

On Tuesday, Square’s stock broke up through the descending line that had been holding it down, and on Wednesday morning a significant amount of bullish volume came into the stock, which gave traders the indication that a larger move to the upside was imminent.

By midday Wednesday, the volume on Square’s stock matched the volume from the entire trading session Tuesday.

2. Sweepers.....

When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price.

A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

At 10:01 a.m., a trader executed a call sweep of 2,048 Square options with a $250 strike price expiring on April 9. The trade represented a $622,592 bullish bet for which the trader paid $3.04 per option contract.

At 10:04 a.m., a trader executed a call sweep of 541 Square options with a $220 strike price expiring on April 16. The trade represented a $1.44-million bullish bet for which the trader paid $26.60 per option contract.

At 10:33 a.m., a trader executed a call sweep of 638 Square options with a $260 strike price expiring on May 21. The trade represented a $880,440 bullish bet for which the trader paid $13.80 per option contract.

Together, traders are betting over $2.94 million the share price of Square is going higher.

3. Analysts Positivity.....

Barclays also maintained and Overweight rating on Square Wednesday and raised its price target from $320 to $330.

Barclays argues that Square has been investing significantly in its international operations, is hiring briskly abroad, and is now "finally positioned correctly" to grow in global markets. This implies that there's now meaningful upside for Square to outperform analyst expectations internationally, Barclays says, giving rise to the possibility of an earnings beat when Square reports its first-quarter 2021 results, probably in May.

Also, French investment bank Oddo BHF initiated coverage of Square Wednesday.

Summary.....

Analysts were already feeling pretty optimistic about those first-quarter results, forecasting a turn to profitability and $0.16 per share in pro forma earnings -- and 138% revenue growth to $3.3 billion. So how much might international growth move those numbers?

According to S&P Global Market Intelligence, Square currently gets only about 3.3% of its total revenue from outside the U.S. On the one hand, this means that even a doubling of international revenue would still leave this segment very small relative to U.S. sales, at least initially. On the other hand, it means that there's quite a lot of room to grow internationally. Barclays (and Oddo, too) are probably right to be optimistic.

Conclusion.....

Square's pullback was primarily a result of the market rotation. Although the company's seller ecosystem was negatively impacted by the COVID-19 pandemic, there were signs of improvement in the fourth quarter. And the increased availability of vaccines bodes well for a stronger performance throughout the rest of 2021.

Meanwhile, Square's Cash App digital wallet continues to be a monster growth story for the company. Cash App gross profit skyrocketed 162% year over year in Q4. Square should be able to deliver even more growth by driving increased adoption of related products and services such as the Cash Card debit card.

The company achieved a significant milestone in March as its Square Financial Services unit began banking operations. With a federally chartered bank under its umbrella, Square will be able to offer more financial services for its business customers. Over time, the fintech leader is likely to expand its banking services.

In many ways, Square is just getting started in its quest to turn the financial services industry upside down. Its shares have plenty of room to run.

Therefore…..

Will Square Stock Continue To Climb?

Will We Recommend Another Trade On Square?

What Other Trades Are We Anticipating?

Do You Wish To Be Part Of This Action?

For answers, join us here at Weekly Options USA, and get the full details on the next trade.


Join us today and find out!

While there are many more areas that can help to explain option trading, this is a basic overview of what stock options are, and where and how they started.



Recent Articles

  1. Weekly Option Trade Results

    The results from recent trades offered through our membership service are listed on this page.

    Read More

  2. Which Stocks Have Weekly Options?

    Which stocks have weekly options available - updated on November 19, 2022 - are listed on this page, and are grouped into the relevant sectors including Technology, Financials and Healthcare.

    Read More

  3. Advanced Micro Devices Weekly Options Trade Provides 208% Profit!

    Wells Fargo analyst cut his growth estimates for the next three years on AMD shares, citing weakening demand in the PC market, providing for an Advanced Micro Devices Weekly Options Trade.

    Read More

Back to Weekly Options USA Home Page from Square Stock Price On The Move Upwards!