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Actionable news in SQ: Square Inc,

E Square's Reward/Risk Ratio Back In Favor

Square Inc. (SQ) came public in November 2015 and closed its first trading day near $13 and traded near highs of $16 earlier this year, but since have come back down to $9, near the post-IPO low from February just above $8. At this level Square becomes interesting with the recent options activity.

Looking at recent options activity in Square, on 6-10 a trader sold 10,000 September $9 puts to open at $1.10, willing to be long 1M shares a $7.90 cost basis. This past week has also seen some size buys of July $9 calls.

Square aims to be the future of commerce, and its solutions address not only payment, but also receipts, employee clocking in/out, analytics, payroll and marketing. SQ also has lower hardware costs, faster settlement, lower processing costs and a quicker approval process for merchants. There are a lot of disruptive trends in Square’s favor including the shift to electronic payments, SaaS, Mobile, and...