Block Options Point To Further Downside Ahead

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Block Inc. SQ traded at 1.8 times the average daily put volume on Thursday.

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There was a seller of 7,000 of the November 57.5 puts at an average price of $8 per contract, Khouw mentioned. The trader bought 7,000 of the November 50 puts at an average price of $4.50 per contract, he added. The trader expects Block to decline by 19% by November expiration, Khouw further mentioned.

SQ Price Action: The stocks of Block declined by 5.92% to settle at $55.93 on Thursday.

Photo courtesy of Block.