Big Gainer Alert: Trading today’s 8.0% move in BLOCK INC $SQ

Quantchabot has detected a promising Bull Call Spread trade opportunity for BLOCK INC (SQ) for the 29-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

SQ was recently trading at $65.49 and has an implied volatility of 83.87% for this period. Based on an analysis of the options available for SQ expiring on 29-Jul-2022, there is a 34.19% likelihood that the underlying will close within the analyzed range of $65.56-$85.53 at expiration. In this scenario, the average linear return for the trade would be 10.88%.

Big 7.98% Change: After closing the last trading session at $60.65, BLOCK INC opened today at $61.41 and has reached a high of $65.57.

Trade approach: A movement as big as 7.98% is a significantly bullish indicator, so this trade is designed to be profitable if SQ maintains its current direction and does not revert back to pricing on the bearish side of $65.49 on 29-Jul-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if BLOCK INC closes at or above $54.35 on 29-Jul-2022. Based on our risk-neutral analysis, there is a 76.00% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.