I am recommending we book profits on our Block (SQ) put. While the annualized rate of return is below our 26% target, this is the prudent move given the Federal Reserve announcement later today.
We will put new money to work during tomorrow’s Live Trading Session once we see how the market reacts to the interest rate increase and central banker comments.
Current Stock Price: $69.35
Cash in Hand: $0.44
Action: Buy to close the SQ Jul Week Five (7/29) 61 Put
Current Option Price: $0.20-$0.22
Recommended Limit: Set your initial limit order at $0.21, but adjust as needed to close today
Profit: $0.23, or $23 per contract
Rate of Return: 0.4% in seven days, or 20% on an annualized basis