• Sharp Paper Insiders

Is the rally for real? For Square, someone certainly thinks so.

We’re seeing something today we haven’t seen all month: a rally that lasts for more than one trading session. So clearly, the biggest question on everyone’s mind is… Will it hold? As a trader, you know better than to make a rash directional decision like this without proper technical support – so for now, the jury is still out. However, one sharp paper trader is betting big that the bottom has indeed been established in Square (NYSE: SQ).

Square provides the little white device that merchants place into their phone or tablet that allows for mobile credit card processing. Its rates are as follows:

• 5% + 10¢ per tap, dip or swipe
• 5% + 15¢ per keyed-in transaction.

In a mobile world, this is certainly a technology that’ll continue to gain acceptance. But as for today’s trade, someone just bought 3,551 weekly Square November $67.50 calls that expire on the 30th. At $8.50 per call, that amounts to a massive total purchase of $3,018,350.

Already deep in the money, this buyer appears to want to fully leverage a continued upside move in Square. For every $1 Square moves up from here, this buyer stands to make around $355,100. If you see any sort of pullback, a dip buy in Square could certainly be a position worth jumping into. After all, someone just bet $3 million that Square will continue moving up into the end of November. That’s certainly an order worth trailing!