This Is What Whales Are Betting On Block

Author: Benzinga Insights | April 04, 2024 12:46pm

Investors with a lot of money to spend have taken a bearish stance on Block (NYSE: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 15 uncommon options trades for Block.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 60%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $253,455, and 9 are calls, for a total amount of $595,749.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $67.5 to $100.0 for Block over the recent three months.

Volume & Open Interest Trends

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Block's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Block's significant trades, within a strike price range of $67.5 to $100.0, over the past month.

Block Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
SQ	CALL	SWEEP	BEARISH	01/17/25	$10.65	$10.6	$10.65	$90.00	$217.2K	5.6K	302
SQ	CALL	SWEEP	BULLISH	05/17/24	$4.6	$4.55	$4.6	$82.50	$91.5K	1.3K	293
SQ	CALL	TRADE	BEARISH	05/03/24	$5.2	$3.75	$3.75	$83.00	$59.2K	35	158
SQ	PUT	SWEEP	BEARISH	05/17/24	$3.1	$3.05	$3.05	$70.00	$59.1K	8.7K	272
SQ	PUT	SWEEP	BULLISH	01/16/26	$13.3	$12.95	$12.95	$67.50	$58.2K	50	45

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 2023, Square's payment volume was a little over $200 million.

In light of the recent options history for Block, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Block

• Currently trading with a volume of 6,985,099, the SQ's price is down by -0.92%, now at $78.92.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 28 days.

Expert Opinions on Block

5 market experts have recently issued ratings for this stock, with a consensus target price of $85.6.

• Maintaining their stance, an analyst from Benchmark continues to hold a Buy rating for Block, targeting a price of $99.
• An analyst from Morgan Stanley has revised its rating downward to Underweight, adjusting the price target to $60.
• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a In-Line rating on Block with a target price of $75.
• Consistent in their evaluation, an analyst from Mizuho keeps a Buy rating on Block with a target price of $99.
• An analyst from Keybanc has decided to maintain their Overweight rating on Block, which currently sits at a price target of $95.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Block with Benzinga Pro for real-time alerts.

Posted In: SQ