There’s a Massive Bet This Software Firm Will Move Higher

Somebody clearly knows something about PagSeguro Digital. Let’s watch it and see if we can profit too.

When it comes to stocks that you track on a daily basis, PagSeguro Digital (NYSE: PAGS) most certainly isn’t one of them. Headquartered in São Paulo, Brazil, it’s a software infrastructure company that offers payment and financial technology services for merchants and small- to medium-sized businesses.

The stock has been rather volatile lately – starting in mid-June when the company announced a $965 million follow-on offering priced at $29. Shares started the month of June around $36 and are currently trading down around $27.30.

So why bring this to your attention?

Because someone has established a major PagSeguro position – and it’s too massive to ignore.

Looking specifically at the August 30 line, you’ll find that 24,289 contracts are currently being held in open interest. Assuming a price of $1.24 per contract, that means someone (or a group of speculators) is collectively betting more than $3 million that PagSeguro will trade above $31.24 per share by the third week of August. Will PagSeguro gain 14% in the next month for this speculation to pay off? Who knows – but it’s certainly worth tracking. For $3 million, somebody out there might know something that we don’t.


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