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Bear Lays Down Risky, Monster Bet in Square Puts for Earnings

by | Aug 3, 2023

No video today because I’m out of the office. But, as always, I have my eyes on the day’s top order flow…

Most of Thursday’s earnings hype will of course focus on Apple and Amazon, which both report after the close. But another ticker caught my eye this morning when it came across my personal options scanner…

Just after the open, a trader laid down a BIG, bearish $648K bet on weekly Block Inc. (NYSE: SQ) $70 puts. 

Block also reports after the close, and I’m generally leery of puts because they could always be a hedge against a long position. But this is a particularly big bet and pretty close to the money when placed, with SQ trading right around $72 a share. Market makers were also implying a $5.50 move up or down by expiration at the time of this order.

Not to mention, the market has been weak and looks ready to sell off while cousin stock PayPal was tanking over 11% on Thursday…

As always, this is a super risky trade that will go to $0 Friday on the open if the big trader is wrong — so you must respect the risk!

And wouldn’t you know… as I was finishing up, an order for SQ Aug. 11 $75 CALLS hit the tape…

We also saw another monster bet in Alibaba — the Amazon of China (some AMZN action below as well) — caught my attention, and also made me scratch my head a bit with how far out of the money it is… but it is long-dated… catch it below!

Thursday’s Top Order Flow: 

  • Block Inc. (NYSE: SQ): Aug. 4, $70 PUT; Aug. 11 $75 CALL.
  • Best Buy Co. Inc. (NYSE: BBY): August $82 CALL.
  • Alibaba Group Holding Ltd – ADR (NYSE: BABA): December $140 CALL.
  • Amazon.com Inc. (Nasdaq: AMZN): Aug. 4, $119 PUT.
  • And more!

Note: If no date is listed after the month, it’s the monthly expiration (third Friday).

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

P.S. Get In, Get Out… in 24 Hours or Less

In the world of trading, VERY few people can consistently pull off the “24-hour trade”

And even fewer can do it while pinpointing gains of 100% or better. 

It’s not because they’re bad traders…

It’s just that their strategy was never designed for 24-hour trades…

In my opinion, there is only one way to trade this current market, and that’s 24 hours at time.

It has nothing to do with chart patterns, technicals, fundamentals or anything else.

It has everything to do with trading ahead of headline news stories.

And thankfully, that’s just what I do…

Not only do I have the data and research to back that up….

I have real trade alerts to validate how well it works.

The Proof Is in the Pudding   

The profits and performance shown are not typical, and you may lose money.  From 2/21/20 to 8/1/23 the win rate on live trades is 67.7%, the average return of winners and losers combined is 13.4%. The average winner is 51.6% with a 6.7-day average hold time for the options.

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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