Schaeffer's Weekly Options Countdown subscribers secured a 300% profit from a Block Inc (NYSE:XYZ) weekly 9/5 79-strike put recommendation, capitalizing on the stock's persistent technical weakness. The trade, initiated on August 31 and closed by September 4, benefited from XYZ's inability to hold above $80, repeated rejections near $73, and significant call open interest at $80, factors that contributed to a recent five-day losing streak for the stock.
The recent price action in Block Inc. (XYZ) demonstrates significant technical weakness, which was recently exploited via a short-term put option trade yielding a 300% return. The bearish thesis was predicated on the stock's inability to sustain a price above the $80 level, a key resistance zone that had repelled advances for over a month and was reinforced by a prior pivot low at $80.50. This price ceiling was amplified by peak call open interest at the $80 strike, creating a technical and options-based barrier that likely contributed to hedging flows pushing the stock lower. The subsequent five-day losing streak, which drove the stock back below its 20-day moving average, confirmed the negative momentum and validated the trade's premise of a reversion towards the $73-$74 support area. The context of stalling growth among fintech peers further supported the negative outlook on the stock during this period.
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strongly positive
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0.80
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