Block Inc (SQ)

They've done a great job getting their app into small businesses. Has huge potential. If you own, then average up, but wait for pullbacks.

Made good profits, what do I do now? He probably wouldn't hold this himself, but would recommend you seek out personal financial advice. Has avoided this, because of their very high fees.

(A Top Pick May 4/17. Up 14%.) This was called away on October 19.

Sell or Hold? One of the clear themes in this market has been Fintech and companies around payments. Digital payments are growing very, very rapidly and are going to continue to do so. This company is very effective in the midsize and small size companies providing the ability to transact, doing analytics, managing receipts, etc. It has recently pulled back from $49 into the 50-day moving average, and has done this type of pullback probably 10 times in the last 2 years. Each time has been an opportunity to Buy. There is very strong sales revenue growth, and is in a sector that is very attractive. In the near term there has been money rotating from technology to other sectors, but he thinks technology and Fintech are sectors that are going to perform well in the next year. He would buy this.

In the world of structural themes, digital payments are one of the most important ones, and we are still relatively in early stages. This sells software and devices for point of sale. It’s a quickly growing market. They are also getting involved in some ancillary businesses, being able to transfer money back and forth. He really likes this company. Has a very low volatility chart. A little extended, but is a leader in this space.

A Top Pick in May, selling a September Covered Call. The stock rose sharply. How did you manage the covered call? Originally he sold $24 calls, and then rolled them for $26 and then up to $28. The September calls will expire worthless, and will probably write another. Premiums are in the top quartile of all US stocks in terms of high option premiums. He likes the stock.

(A Top Pick May 10/16. Up 47%.) Sell: Square Sept 24 calls at $10.Sell: Square Sept 24 puts at $10. This was a Covered Straddle. He was trying to show what a straddle looks like. He was basically agreeing to sell the stock at $10 and buy more shares at $10. The stock was about $10, so the Put option expired. The Call would’ve been exercised and he would have been called away with a return of 47%.

This is by far and away the more obvious Buy that there is. It really appeals to small merchants. This makes a lot of sense. There is a lot of growth and a potential buyout.

It is up about 180%. He loves it and he loves the mobile payment universe. It would be a takeover target. It is going higher.

This is a financial services company. He really likes their business model. It is making inroads with a lot of small businesses, because they are more cost-effective than running the normal credit cards through. He is doing a Covered Write on it. The premiums are quite rich on it.

A smaller fin-tech company. It is an instant payment system for credit cards using cell phones. There has been tremendous growth. They are doubling each year. They are coming out of the investment phase. The earnings are taking off. Don’t sock a whole ton of money into this name.

He really likes financial technology, which is a space that is going to continue to consolidate. The number of small businesses that are using Square is burgeoning. Technically, the stock is set up really well. He would have no problem owning this.

Sell: Square Sept 24 calls at $10.

Sell: Square Sept 24 puts at $10.

This just reported on Thursday and missed expectations. You are trading off volatility. He is taking a position in this, which is trading at $10 a share today. If he starts with 100 shares, he is either going to own 200 shares at an average cost of $8.10. If it stays the same or rises, he is going to make 32% of his money over the next 4 months.