Smart Money Is Betting Big In Block Options

Author: Benzinga Insights | April 29, 2024 10:01am

Deep-pocketed investors have adopted a bullish approach towards Block (NYSE:SQ), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in SQ usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 10 extraordinary options activities for Block. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 60% leaning bullish and 40% bearish. Among these notable options, 3 are puts, totaling $384,780, and 7 are calls, amounting to $368,741.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $65.0 and $100.0 for Block, spanning the last three months.

Analyzing Volume & Open Interest

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 $65.0 to $100.0 over the preceding 30 days.

Block Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
SQ	PUT	SWEEP	BULLISH	05/03/24	$4.1	$4.05	$4.05	$75.00	$235.3K	496	14
SQ	PUT	SWEEP	BULLISH	03/21/25	$8.45	$8.35	$8.35	$65.00	$107.7K	302	0
SQ	CALL	SWEEP	BULLISH	05/17/24	$1.44	$1.4	$1.44	$87.50	$88.9K	2.2K	645
SQ	CALL	SWEEP	BEARISH	05/31/24	$1.49	$1.29	$1.5	$90.00	$75.0K	28	0
SQ	CALL	SWEEP	BULLISH	07/19/24	$1.39	$1.38	$1.39	$100.00	$59.3K	1.3K	852

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.

Following our analysis of the options activities associated with Block, we pivot to a closer look at the company's own performance.

Block's Current Market Status

• With a volume of 688,551, the price of SQ is up 0.23% at $74.65.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 3 days.

Expert Opinions on Block

In the last month, 5 experts released ratings on this stock with an average target price of $92.6.

• Consistent in their evaluation, an analyst from Baird keeps a Outperform rating on Block with a target price of $98.
• An analyst from Susquehanna persists with their Positive rating on Block, maintaining a target price of $100.
• Maintaining their stance, an analyst from Mizuho continues to hold a Buy rating for Block, targeting a price of $106.
• Reflecting concerns, an analyst from Morgan Stanley lowers its rating to Underweight with a new price target of $60.
• An analyst from Benchmark persists with their Buy rating on Block, maintaining a target price of $99.

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