by Ian Harvey
May 09, 2018
OUT WHILST THE GOING IS GOOD!
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
Square Inc (NYSE:SQ)
Here is an update of Square’s call options trades. These options trade were recommended to “Armchair Trader” members of Stock Options Made Easy on April 16, 2018; with profits up 67.5%++, and then again to “Cut-to-the-Chase” members on April 30, 2018; potential profits of 97.5%++!
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
The Trades to Consider……
…..for Armchair Traders…..
Payment processing and point-of-sale upstart Square Inc. (NYSE:SQ) stock is up 30% for the year, and the fundamentals are still intact, despite headlines that have caused volatility in the equity markets to spike. There have been panics over spiking interest rates, the threat of tariff wars, social media data breaches and more recently the airstrikes in the Middle East.
There is a strong trend moving financial transactions to the online realm and that benefits companies like Square……read more……
Payment processing and point-of-sale upstart Square Inc. (NYSE:SQ), will report earnings after the market closes. The consensus earnings estimate is $0.06 per share on revenue of $623.75 million. But the Earnings Whisper number is $0.07 per share.
The company's guidance was for earnings of $0.03 to $0.05 per share on revenue of $290.00 million to $295.00 million. Consensus estimates are for year-over-year earnings growth of 300.00% with revenue increasing by 35.14%......read more……
** Armchair” OPTION TRADE: Buy the SQ JUNE 15 2018 48.000 CALL at approximately $4.00.
** Cut-to-the-Chase” OPTION TRADE: Buy SQ MAY 18 2018 50.000 CALL at approximately $2.10 each.
Square stock fell after reporting its first-quarter results after markets closed on May 2; and Square beat on revenue but not on earnings. Quarterly revenue grew 45% year-over-year, reaching $669 million.
Square's gross payment volume rose 31% to $17.8 billion in the first quarter, and transaction-based revenue, which accounts for most of Square's sales, rose 30% to $523 million. Higher margin subscription and services revenue, which includes Square Capital loans and Caviar, a food delivery service, almost doubled, hitting $97 million.
Square is seeing a surge in revenue growth.
Square is not only growing revenue; it is growing quarterly revenue at an increasingly faster pace.
Square's quarterly revenue has increased on an annual basis at a faster rate for five quarters now. Square's revenue in the fourth quarter of 2016, was up 20.7% from the previous year. Revenue in the most recent quarter grew 45% year-over-year.
Square can continue adding new lines of business and become a full-stack fintech company like Alibaba Group Holding Ltd (NYSE: BABA) subsidiary Ant Financial in China.
Square has already expanded from payments processing to peer-to-peer payments with Square Cash and loans through Square Capital. Dorsey is a true believer in bitcoin and he added bitcoin trading to the Square Cash app earlier this year.
The research firm CB Insights cited a patent filing from last year as evidence that Square could be getting into the crowdfunding business.
Square announced this week that they're acquiring Weebly. It makes building a website really easy for a dummy like me. It gives Square exposure to commerce. Square is becoming more than just a payments company; using its tech and its data to integrate complementary offerings into a bigger model.
- Armchair Traders – 67.5% (Aim is 100%) –
- Cut-to-the-Chase – 97.5% -
ACTION TO TAKE…….
"YOU NEED TO BE IN IT TO WIN IT!"
Now is the time to decide if it is worth continuing to hold this trade or exit on excellent profits. It is nearly always prudent to exit a trade before an unknown incident occurs that could rattle a sound profit, and this is a fine example of such a situation.
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, as seen in this scenario, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.
Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……