27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Someone with a lot of money to spend has taken a bearish stance on Block (NYSE:SQ).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with SQ, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 41 uncommon options trades for Block.
This isn't normal.
The overall sentiment of these big-money traders is split between 43% bullish and 56%, bearish.
Out of all of the special options we uncovered, 22 are puts, for a total amount of $2,029,677, and 19 are calls, for a total amount of $660,506.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $42.5 to $130.0 for Block over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Block's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Block's whale trades within a strike price range from $42.5 to $130.0 in the last 30 days.
Block Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| SQ | PUT | SWEEP | BULLISH | 06/21/24 | $77.50 | $335.4K | 1.5K | 141 |
| SQ | PUT | TRADE | BEARISH | 06/21/24 | $77.50 | $325.7K | 1.5K | 257 |
| SQ | PUT | TRADE | BEARISH | 06/21/24 | $65.00 | $202.8K | 713 | 380 |
| SQ | PUT | SWEEP | BEARISH | 01/19/24 | $42.50 | $178.5K | 1.9K | 506 |
| SQ | PUT | TRADE | BEARISH | 01/19/24 | $70.00 | $159.2K | 6.0K | 0 |
Where Is Block Standing Right Now?
- With a volume of 8,180,574, the price of SQ is down -1.64% at $44.87.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 41 days.
What The Experts Say On Block:
- UBS downgraded its action to Neutral with a price target of $65
- Wedbush downgraded its action to Neutral with a price target of $70
- Baird has decided to maintain their Outperform rating on Block, which currently sits at a price target of $72.
- Berenberg downgraded its action to Buy with a price target of $75
- RBC Capital downgraded its action to Outperform with a price target of $90
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Block, Benzinga Pro gives you real-time options trades alerts.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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