Investors with a lot of money to spend have taken a bearish stance on Block SQ.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, 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 these investors just did?
Today, Benzinga's options scanner spotted 10 uncommon options trades for Block.
This isn't normal.
The overall sentiment of these big-money traders is split between 20% bullish and 80%, bearish.
Out of all of the special options we uncovered, 8 are puts, for a total amount of $1,170,249, and 2 are calls, for a total amount of $422,248.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $62.5 and $85.0 for Block, spanning the last three months.
Volume & Open Interest Development
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Block's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Block's substantial trades, within a strike price spectrum from $62.5 to $85.0 over the preceding 30 days.
Block 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| SQ | CALL | TRADE | BEARISH | 02/16/24 | $75.00 | $309.6K | 6.6K | 10.0K |
| SQ | PUT | SWEEP | BEARISH | 01/17/25 | $82.50 | $266.5K | 228 | 130 |
| SQ | PUT | TRADE | BULLISH | 04/19/24 | $65.00 | $237.0K | 1.5K | 2.0K |
| SQ | PUT | TRADE | BULLISH | 04/19/24 | $65.00 | $232.5K | 1.5K | 2.5K |
| SQ | PUT | SWEEP | BEARISH | 04/19/24 | $65.00 | $176.6K | 1.5K | 1.5K |
About Block
Founded in 2009, Block provides payment services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. In 2022, Square's payment volume was a little over $200 million.
Following our analysis of the options activities associated with Block, we pivot to a closer look at the company's own performance.
Where Is Block Standing Right Now?
- With a trading volume of 2,640,610, the price of SQ is up by 0.17%, reaching $65.96.
- Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
- Next earnings report is scheduled for 16 days from now.
What Analysts Are Saying About Block
2 market experts have recently issued ratings for this stock, with a consensus target price of $87.5.
- An analyst from BTIG upgraded its action to Buy with a price target of $85.
- An analyst from Wedbush upgraded its action to Outperform with a price target of $90.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Block options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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