Options Traders Bank Profits in SQ

Square Inc. (SQ) finally broke support!

In our TNT Option Trading service we have been watching SQ for a major break in support levels.

On March 3rd, we analyzed SQ for a short term break of the $80.19 flat line support level.  Traders could have bought the 81 6MAR 81 puts for about $2.05.

The stock dropped down down to a support level ($76.39) that has held the stock up since Feb. 24th.  Traders could have taken the quick profit or could have held on for larger gains.

Those that choose to lock in profits could have locked in profits as the stock broke below $76 for about $3.10 or $1.10 or profit or 54%.

As the week moved on the stock moved higher but made lower highs and continued to test the lows at $75.84.

On Friday expiration, the market and the stock dropped to $70.23 and put option traders could have locked in over $8.50.

This would have resulted in $6.45 of profit or 314% ROI. 

The stock continued to drop for the next four trading days, but traders would have had to roll their options out to the next expiration.