Block might bounce up from this base - holding up well today
Day or Short Swing Trade Idea
After the morning sell down, price has been holding around 82 as the market chops around.
UPDATE - markets just dropped as I was typing, but SQ was quick to reverse the dip. This morning I have noticed the stock is dropping a little with the market but has been quick to recover also.
I bought weekly 90 strike calls for 1.27. It is a small position for a day trade, but if markets starts moving higher in the afternoon I may also add 20May calls to hold overnight.
After the morning sell down, price has been holding around 82 as the market chops around.
UPDATE - markets just dropped as I was typing, but SQ was quick to reverse the dip. This morning I have noticed the stock is dropping a little with the market but has been quick to recover also.
I bought weekly 90 strike calls for 1.27. It is a small position for a day trade, but if markets starts moving higher in the afternoon I may also add 20May calls to hold overnight.
Trade active:
With the fear/greed index (CNN's) at 21 and CBOE SKEW at 127 has not been below 125 since Oct/Nov 2020 - there is a tradeable bounce coming. Use small positions and be patient.
Trade closed manually:
When stock moved over 86, I held calls through consolidation for a move up towards 88 (5min 200sma). Then I became less certain of more upside so I closed position for a day trade on the second push over 86. Sold calls for $2.40/contract.
Comment:
Just a follow up note here - SQ earnings were good so I am keeping this stock on my watchlist for a day or short swing trade if BTC makes a good rally. This will be a short term trade for me; at least for now. Things may change in June.