Someone with a lot of money to spend (and possibly insider knowledge) has taken a bearish stance on Square 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 19 uncommon options trades for Square.
This isn't normal.
The overall sentiment of these big-money traders is split between 47.37% bullish and 52.63%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $411,227, and 14 are calls, for a total amount of $1,053,007.
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 $150.0 to $280.0 for Square over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Square options trades today is 4071.15 with a total volume of 4,468.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Square's big money trades within a strike price range of $150.0 to $280.0 over the last 30 days.
Square 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 | CALL | SWEEP | BULLISH | 11/05/21 | $230.00 | $256.2K | 182 | 249 |
| SQ | PUT | SWEEP | BULLISH | 11/05/21 | $240.00 | $222.1K | 2.7K | 676 |
| SQ | CALL | SWEEP | BEARISH | 01/21/22 | $250.00 | $137.7K | 8.0K | 703 |
| SQ | CALL | SWEEP | BEARISH | 01/21/22 | $250.00 | $112.0K | 8.0K | 870 |
| SQ | CALL | TRADE | BEARISH | 11/05/21 | $230.00 | $96.3K | 182 | 85 |
Where Is Square Standing Right Now?
- With a volume of 1,414,471, the price of SQ is up 0.69% at $250.74.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 1 days.
What The Experts Say On Square:
- SMBC Nikko downgraded its action to Outperform with a price target of $300.0
- Atlantic Equities upgraded its action to Overweight with a price target of $300.0
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 are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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