Core Insights - The article discusses the "Wheel" strategy in options trading, which involves selling cash-secured puts and covered calls to generate income and accumulate shares of desired stocks over time [5][4][3] Group 1: Workday (WDAY) - Workday's stock has seen unusual put options activity, particularly with the January 16, 2026 $185 put option [1] - The stock's enterprise value is $54.45 billion, with an EBITDA multiple of 38.9, similar to Nvidia [7] - Workday's free cash flow for the trailing 12 months was $2.59 billion, yielding 4.7%, which is considered fair value [7] Group 2: Robinhood Markets (HOOD) - Robinhood experienced significant options volume, with 581,878 options traded, 1.6 times its 30-day average [9] - The preferred put option is the $115 strike, which would result in a net cost of $111.35 if exercised, representing a 13.1% OTM [10] - Selling the $115 put would generate $365 in premium income, with an annualized return of 39.9% and a 77.7% chance of the share price being above $111.35 at expiration [11] Group 3: SoFi Technologies (SOFI) - SoFi's stock has increased by 85% year-to-date, with a current price of $28.49 [14] - Analysts have mixed opinions, with only 7 out of 24 rating it a Buy, and a target price of $27, below its current price [15] - The January 2, 2026 $26 put option has a DTE of 28 to 60 days, generating $104 in premium income with an annualized return of 41.1% [18]

Core Insights - Block's stock has lukewarm analyst support with 27 out of 41 analysts rating it as a Buy, and a target price of $84.58, which is about 5% above its current price [1] - The company's share price has fluctuated between $50 and $100 from May 2022 to October 2025, reaching a 52-week high of $99.26 on December 5, 2024, but has since declined by 19% [2] - Block's Q2 2025 results were weaker than expected, but the guidance for 2025 has left investors optimistic, leading to a modest increase in share price over the following months [6][7] Financial Performance - For 2025, Block projects a gross profit of $10.17 billion and an adjusted operating profit of $2.03 billion, reflecting a 20% margin, significantly higher than the 2024 figures of $8.89 billion gross profit and $892 million operating profit with a 10% margin [7] - Cash App's gross profit increased by 16% year-over-year, indicating positive growth in the company's financial ecosystem integration efforts [9] Strategic Focus - Block is concentrating on the restaurant and hospitality sectors, recently launching new products aimed at enhancing the operational efficiency of restaurant owners [8] - The long-term goal is to merge Cash App and Square into a single integrated financial platform, which is expected to simplify user experience and increase engagement [9] Options Activity - There was significant options activity for Block, with 1,311 unusually active options recorded, where calls outnumbered puts more than two to one [4] - The Nov. 21 $75 and $65 puts had the highest volumes, indicating potential strategies for investors looking to capitalize on Block's stock movements [3][11] Options Strategies - The Long Ratio Call Spread strategy involves a combination of short and long calls, betting on significant price movement, with maximum gain being unlimited based on stock appreciation [21][22] - The Covered Strangle strategy includes owning shares while selling out-of-the-money puts and calls, providing premium income and potential high returns based on various scenarios [12][18][19]