Block (SQ), the company formerly known as Square, should be familiar to longtime Options Income Blueprint members. Between April 2018 and July 2020, we traded the stock successfully 35 times in a row. Members who sold just one contract each generated $2,524 from the stock.
The financial services and digital payments company, which predominately serves gig workers, small businesses and individuals without relationships to traditional banks, has created a robust ecosystem that serves as a moat around its business.
Shares have performed very well over the past month, and the volatile nature of the stock means we have the opportunity to capture large premiums.
Let’s get back to trading this old favorite with a silly put that is 18% out of the money.
Current Stock Price: $74.41
Action: Sell to open the SQ Jul Week Five (7/29) 61 Put
Current Option Price: $0.42-$0.46
Recommended Limit: Set your initial limit order at $0.44. You can go as low as $0.37, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, July 29
Potential Rate of Return: 0.7% in nine days, or 29% annualized, if this option expires worthless