Decoding Block's Options Activity: What's the Big Picture?

Author: Benzinga Insights | September 06, 2024 12:16pm

Investors with a lot of money to spend have taken a bearish stance on Block (NYSE:SQ).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with SQ, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 22 uncommon options trades for Block.

This isn't normal.

The overall sentiment of these big-money traders is split between 22% bullish and 68%, bearish.

Out of all of the special options we uncovered, 13 are puts, for a total amount of $862,487, and 9 are calls, for a total amount of $521,940.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $45.0 and $120.0 for Block, spanning the last three months.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of Block stands at 1418.06, with a total volume reaching 9,295.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Block, situated within the strike price corridor from $45.0 to $120.0, throughout the last 30 days.

Block 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
SQ	PUT	TRADE	BEARISH	01/16/26	$27.65	$27.35	$27.6	$85.00	$138.0K	351	112
SQ	PUT	SWEEP	NEUTRAL	12/18/26	$7.85	$7.65	$7.65	$45.00	$130.0K	264	200
SQ	CALL	SWEEP	BULLISH	01/16/26	$8.35	$6.55	$7.4	$87.50	$127.2K	1.3K	172
SQ	CALL	TRADE	BEARISH	12/18/26	$19.95	$19.2	$19.39	$65.00	$96.9K	203	0
SQ	PUT	TRADE	BEARISH	01/16/26	$23.75	$22.05	$23.5	$80.00	$94.0K	130	0

About Block

Founded in 2009, Block provides payment services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. In 2023, Square's payment volume was a little over $200 million.

Block's Current Market Status

• With a trading volume of 2,477,330, the price of SQ is down by -4.72%, reaching $61.53.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 55 days from now.

Expert Opinions on Block

A total of 1 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $92.0.

• An analyst from UBS has decided to maintain their Buy rating on Block, which currently sits at a price target of $92.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Block options trades with real-time alerts from Benzinga Pro.

Posted In: SQ