Market Overview

Mike Khouw's Square Options Trade

Related SQ
Tech Sector Earnings: Revenue Growth Widely Expected To Slow, Will Global Uncertainty Weigh?
Bullish KeyBanc Says Square's Macro Risks Can Be Overcome
Square gains 5.0% after Fiserv CEO calls it a risk to banks (Seeking Alpha)

On CNBC's "Options Action", Mike Khouw suggested that traders should consider a call calendar strategy in Square Inc (NYSE: SQ). The company reports earnings on May 2 and the near dated options got quite expensive, explained Khouw.

He wants to sell the May 48 call for $2.90 and buy the July 48 call for $4.50. Khouw is hoping that the stock is going to close below $48 at the May expiration and then trade higher, above the break even price of $49.60. The stock is trading at $47.57, less than 1 percent below $48 and 4.27 percent below $49.60.

Posted-In: Mike Khouw Options ActionOptions Markets Media Trading Ideas


Related Articles (SQ)

View Comments and Join the Discussion!

Jim Cramer Shares His Thoughts On AT&T, New York Community Bancorp And More

Jim Cramer Advises His Viewers On Array Biopharma, Chegg And PPG Industries