Square Stock Price On The Move Upwards!

and, "Weekly Options Members” Make 108% Potential Profit In 24 Hours!
More to Come?

April 11, 2021

Square stock price is moving upwards vaulting 14% to $261.65 last week, with above-average volume in the last three days.

And, “Weekly Options Members” managed to gain a potential profit of 108% in 24 hours trading days.

More upwards movement is expected, and for those that have exited the trade, a new trade may be considered.

Why The Trade Recommendation On Square?

The Major Catalysts for This Trade.....

1. The Chart.....

Square’s stock lost over 32% of its value between Feb. 16 and March 5 following a consolidation period on the Nasdaq 100.

Since hitting a temporary bottom of $191.68, Square’s stock also eased into a consolidation pattern and on Tuesday broke bullish.

On Wednesday morning, option traders saw signs of bullish follow-through on the chart and bought a large amount of call sweeps.

Although Square’s stock has been trading in a bearish descending triangle since reaching an all-time high of $283.12, a bullish inverted head-and-shoulder pattern within the descending triangle overrode the bearish pattern.

On Tuesday, Square’s stock broke up through the descending line that had been holding it down, and on Wednesday morning a significant amount of bullish volume came into the stock, which gave traders the indication that a larger move to the upside was imminent.

By midday Wednesday, the volume on Square’s stock matched the volume from the entire trading session Tuesday.

2. Sweepers.....

When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price.

A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

At 10:01 a.m., a trader executed a call sweep of 2,048 Square options with a $250 strike price expiring on April 9. The trade represented a $622,592 bullish bet for which the trader paid $3.04 per option contract.

At 10:04 a.m., a trader executed a call sweep of 541 Square options with a $220 strike price expiring on April 16. The trade represented a $1.44-million bullish bet for which the trader paid $26.60 per option contract.

At 10:33 a.m., a trader executed a call sweep of 638 Square options with a $260 strike price expiring on May 21. The trade represented a $880,440 bullish bet for which the trader paid $13.80 per option contract.

Together, traders are betting over $2.94 million the share price of Square is going higher.

3. Analysts Positivity.....

Barclays also maintained and Overweight rating on Square Wednesday and raised its price target from $320 to $330.

Barclays argues that Square has been investing significantly in its international operations, is hiring briskly abroad, and is now "finally positioned correctly" to grow in global markets. This implies that there's now meaningful upside for Square to outperform analyst expectations internationally, Barclays says, giving rise to the possibility of an earnings beat when Square reports its first-quarter 2021 results, probably in May.

Also, French investment bank Oddo BHF initiated coverage of Square Wednesday.

Summary.....

Analysts were already feeling pretty optimistic about those first-quarter results, forecasting a turn to profitability and $0.16 per share in pro forma earnings -- and 138% revenue growth to $3.3 billion. So how much might international growth move those numbers?

According to S&P Global Market Intelligence, Square currently gets only about 3.3% of its total revenue from outside the U.S. On the one hand, this means that even a doubling of international revenue would still leave this segment very small relative to U.S. sales, at least initially. On the other hand, it means that there's quite a lot of room to grow internationally. Barclays (and Oddo, too) are probably right to be optimistic.