$SQ call prices round up

$SQ call prices round up

by

Option traders have run up fast profits in Square (SQ) calls.

On Oct. 30Market Rebellion’s Unusual Activity Service identified the the purchase of 15,000 November $47.50 calls for $0.67 to $0.68 with shares at $39.25. Volume was clearly above the previous open interest of 7,982 contracts, indicating that this was a new position.

Those calls have traded for up $5.45 today, a 701.47% return, while the stock surged 31.47% in the same time period, an enormous move but one that was still dwarfed by the gain of its options on a relative basis.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

SQ was last up by 12.87% to $49.65.

Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!
Start Your Day the Smart Money Way

Real-time Analysis

Interactive Chat Q&A
Professional Tactics