Square, Inc. (SQ) is scheduled to report earnings after the markets close on Wednesday, 3/9/16.
This trade is both an earnings and long-term trade combo. It expires in June 2016. I have been meaning to buy some (SQ) calls for a while, and with earnings due after the bell today, see an opportunity here. Even if the stock should drop post-earnings, the time-value of this trade will hold value in these calls. If the stock should make a significant move upward, this trade has the potential to turn out extremely well. 9/10.
Buy 10 SQ Jun16 11 Call
NBBO 1.35 – 2.00. Try to pay 1.65 or less for this trade. At a maximum, pay up to 1.80. I will post the STC tomorrow before the opening bell.
Update 1: 3:55 pm EST. I I am in this trade at 1.65. Already a nice gain, could sell. But with this amount of time left, June exp. will keep it. Update 2: 9:25 am EST 3/10/16 : Pre-market, the stock is up about $0.20/share. The earnings report was good, and I see this stock continuing to rise. With a lot of time-value left on this trade, I am placing the STC at $4.00 on the calls, as I see the stock heading towards $15.00/share in the near-term future. I will be updating this trade periodically if there are any changes to the STC. Update 3: 3:34 pm EST 3/10/16: STC still at $4.00. The stock dropped a little bit, nothing significant. Should make a move upward soon. I do not recommend selling anything short of $3.00 if you do not plan to get $4.00.