Novice Trade: Square

Since knocking earnings out of the park two weeks ago, Square (SQ) has backed off a touch and is now trading below $17 a share. While I always expect some reversion after a huge pop, I think the selloff has gone far enough and it might be time to reload on some long calls in SQ.

Also, implied volatility is sitting near all-time lows in this mobile credit card processor. I can buy the April $17 calls, which are right at the money, for about $0.60. These were worth double that about a week ago. I think they will be worth double that in a couple of weeks as well and would scoop them here....8 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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