Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Stocks

Block and Loaded: Targeting Gains in SQ

by admin January 4, 2025
January 4, 2025
Block and Loaded: Targeting Gains in SQ

As digital payments and fintech services continue to reshape the global economy, Block, Inc. (SQ) stands out as a potential beneficiary of this shift. A favorable technical signal and an attractive fundamental backdrop present a compelling bullish thesis for SQ. In this article, we will explore the reasons behind this positive outlook and discuss a strategy you can use to capitalize on it — all identified instantly through the OptionsPlay Strategy Center on StockCharts.com.

Technical Analysis

A closer look at SQ’s chart reveals several bullish indicators:

  • Breakout and Retest of Support. After breaking above the $84 resistance area in November, SQ has since come back to retest this level as support.
  • Strong Risk/Reward Setup. The successful retest suggests a favorable risk/reward, where the downside risk is far more limited than the upside potential to our upside target of $150.

FIGURE 1. SQ STOCK DAILY CHART. The stock is retesting its $84 area as support.Chart source: StockCharts.com. For educational purposes.

Fundamental Analysis

From a fundamental perspective, SQ’s outlook remains promising:

  • Attractive Valuation. Despite Block’s strong growth prospects, the company is currently trading at a 30% discount relative to its peers.
  • Robust Growth Metrics. SQ’s expected 44% earnings per share (EPS) growth is nearly three times higher than its peers’ 13%, highlighting the company’s potential for earnings expansion. Projected 11% revenue growth outstrips the industry median of 7%, confirming the company’s ability to expand its top line.
  • Recent Earnings Insights. Block’s Q3 2024 results showed robust growth in gross profit and a significant turnaround in net income, fueled by the strength of its Cash App and Square ecosystems. While there were some concerns around revenue shortfalls and ongoing regulatory scrutiny of Cash App, the company remains optimistic about continued margin expansion into 2025, forecasting at least 15% overall gross profit growth and new initiatives to drive further gains.

These fundamentals suggest that SQ is well-positioned to capitalize on the continued rise of digital payments, offering investors a potentially rewarding opportunity at current valuations.


Options Strategy

To leverage SQ’s bullish outlook, the OptionsPlay Strategy Center suggests selling the Feb 14 $86/80 Bull Put Spread @ $2.30 Credit.

This entails the following:

  • Sell: February 14, 2025, $86 Put at $4.60
  • Buy: February 14, 2025, $80 Put at $2.30
  • Net Credit: $2.30 per share ($230 total per contract)

FIGURE 2. DETAILS OF A PUT VERTICAL SPREAD IN SQ STOCK.

Trade Details

  • Maximum Potential Reward: $230
  • Maximum Potential Risk: $370
  • Breakeven Point: $83.70 (strike of the sold put minus the net credit per share)
  • Probability of Profit: ~56.46% (if SQ closes above $83.70 by February 14, 2025)

By selling a higher strike put and buying a lower strike put, you collect a premium upfront and benefit if SQ stays above the breakeven price at expiration. This strategy offers a balanced approach to potential upside while containing risk.

Unlock Real-Time Trade Ideas With OptionsPlay Strategy Center

This bullish setup in SQ was identified almost instantly using the OptionsPlay Strategy Center at StockCharts.com. By running a Bullish Trend Following scan, the platform highlighted SQ and structured the optimal options trade without the need for extensive research or guesswork.

FIGURE 3. THE BULLISH TREND FOLLOWING SCAN HIGHLIGHTED SQ AS A POTENTIAL OPTIONS TRADING CANDIDATE.

Subscribing to the OptionsPlay Strategy Center provides you with:

  • Automated Market Scans. Quickly spot the best trading opportunities aligned with your market outlook.
  • Optimal Trade Structuring. Leverage data-driven tools to craft high-probability, risk-defined strategies.
  • Time-Saving Insights. Eliminate hours of manual analysis — receive real-time alerts and ideas within seconds.

Don’t let valuable opportunities slip away. Subscribe to the OptionsPlay Strategy Center today, and elevate your trading with the guidance and clarity you need to make informed decisions. Find the best options trades swiftly, every single day, and empower your investing journey with this cutting-edge tool.

0
FacebookTwitterGoogle +Pinterest
previous post
Stock Market Ends the Week Strong: Could It Spark a Bullish January?
next post
Strongest Top 3 S&P 500 Stocks: Will They Lead the Pack in 2025?

Related Posts

The Secret to Perfecting SPY Entry Points? RSI!

September 19, 2024

The Best Five Sectors, #2

January 11, 2025

Three Charts to Watch for an “All Clear”...

May 8, 2025

Failed Bearish Patterns are Bullish for S&P 500!

May 31, 2024

Get Paid to Buy Your Favorite Stocks Using...

April 2, 2025

Options Trade Ideas YOU NEED to SEE!

December 10, 2024

Forex Secrets: How to Profit When EUR/USD Goes...

October 24, 2024

Why This S&P Support Level is SO IMPORTANT

October 11, 2024

DP Trading Room: These Banks are Bullish Going...

July 9, 2024

Analyze This: Will the Dow Will Soar or...

June 21, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Strategic Chaos or Tactical Goldmine? What QQQ’s Chart is Whispering Right Now

      June 5, 2025
    • Why ADX Can Mislead You — And How to Avoid It

      June 5, 2025
    • S&P 500 on the Verge of 6,000: What’s at Stake?

      June 5, 2025
    • Speaker Johnson surprised by Musk’s criticism of ‘big, beautiful bill’: He’s ‘flat wrong’

      June 5, 2025
    • There’s a way to aid Gaza. I know, my foundation just helped deliver 7 million meals… without incident

      June 5, 2025

    Categories

    • Business (967)
    • Investing (2,320)
    • Politics (2,873)
    • Stocks (1,054)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved