Sell the Double, Buy the Block

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The stock market is embarking on a fresh leg higher, supported by the broadest participation we've seen this cycle.

With speculative growth stocks on fire, our $ARKK 11/15 $52 calls are doubling today. 

We want to take half off the table here and redeploy that capital into a new position. I’m selling them for $1.80.

The initial earnings reaction for $SQ is catching our attention today. The stock plunged lower but has been clawing back losses all morning.

Just look at the wick forming on todays daily candle:

Following a false breakout this week, SQ is ripping off its VWAP from the March high and refusing to break lower from this coil. 

This is the kind of post-earnings shakeout we want to buy all day. 

This stock is a part of the speculative growth theme and looks quite similar to ARKK, but is offering a far more favorable entry. 

If we’re above 71, SQ is probably resolving this pennant higher. 

With our volatility indicator coming off an extreme low and a double false start from this coil, we think a resolution and reaction rally is imminent. 

I’m buying the $SQ 12/20 $77.5 calls for approximately $1.80 per contract 

Steve