Mobile payments is one of the biggest trends for investors to capitalize on starting now.
And digital payments processor Square Inc. (NYSE: SQ) is my hands-down favorite company in this space.
When selecting a stock to trade, I look for a market leader with the following benefits:
- A compelling business model
- Above-average growth
- A strong, identifiable brand
- Superior management.
Square checks all these boxes.
It is a high-growth company and a high-beta (read: volatility) stock. This combination gives us the opportunity to sell well-out-of-the-money puts for excellent premiums.
Our Latest Square Trade
The stock held up well after recent news that Square’s head of payments was leaving the company to join Visa (NYSE: V). I see this as an excellent time to get back into the stock by selling a short-term put.
Recently, we entered a Square trade selling a SQ 65 dollar weekly put that expired in 3 days and collected $.80 or $80 per contract.
Three days later Square stock popped. Instead of letting our 65 dollar put expire worthless, we rolled the position out a week and collected another $68 per contract.
The stock continued to run and the next week 3 days before expiration, we closed the position buying our put back for $0.20 and booking $128 per contract.
And many of our members traded it with 3 contract adding up to $384 of cash in 8 days…
Run with a winner
We have traded the stock successfully 16 times in a row over the last 8 months in my Options Income Blueprint service…all for cash profit.
And this last trade was number 17!
You can jump on the mobile payments bandwagon and start trading this space now. Visa and Paypal are big players here…but Square is the consistent week-after-week runaway winner.
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About The Author
Michael Shulman is a 30 Year Veteran of the financial markets – as a trader, a financial analyst, a financial writer and most recently as an educator.
Michael made his first option trade in 1985 – COMPAQ Computer calls – a position that expired worthless. His second trade broke even; the third brought him a year’s salary, a near twenty to one return on his investment. He entered the financial publishing business formally in 2001 as director of research for ChangeWave Research’s institutional research business. He also was the senior writer and editor of Hedge Fund Investing.
Michael has published two books – Sell Short and Made in America – both of which can be found on Amazon.com He is a frequent contributor to reputable financial sites like Seeking Alpha, MSN, MainStreetInvestor, and Traders Reserve.
Selling Options Expert
Since 2010, he has dedicated himself to teaching investors how to get more income from their portfolios using simple yet safe options selling strategies which produce income every week. This approach was developed from the ground up in Michael’s own accounts. His goal to develop a strategy that cannot be replicated by institutional investors of any size and yet provide a consistent approach for individual traders.
Michael’s trade recommendations in his Options Income Blueprint, Perpetual Income Portfolio Club and Income Masters services maintain a 98% success ratio producing the expected income 98% of the time. No one’s perfect.