TopOptionAlert
Oct 24, 3:08 AM
$XYZ NOV06 80C · still actionable
Zone:
$75.92 to
$77.00
Invalidation: close under
$72.28
Objectives:
$80, then
$86.92
The math: up 4.6% to the first objective and 13.7% to the second, against 5.5% risk on the invalidation, about 2 and a half to 1 to the second.
This is a swing, and the setup is simple. Block reports Tuesday November 3 after the closing bell, and management just raised full year guidance while promising a record 28% margin after cutting nearly 40% of its staff and letting AI pick up the slack. The stock got knocked down 3% Friday and sits in the lower third of its three month range, so you are not chasing anything. You are buying the dip with the report eleven days out and a hard line under the summer low if the story breaks.
P.S. Block has topped the earnings estimate in two of its last three reports. Watch how the stock treats
$80 in the two sessions before the report.
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