Owning PYPL And SQ Is Like Owning Your Own Bitcoin ETF

Bitcoin and PayPal – I think everyone should own both, particularly after this year. To trade what I think is going to be a monster year for both Bitcoin and PayPal, take a look at a call that's somewhat out of the money (OTM), like the PYPL Jan. 15, 2021 $220 call.

Square Inc. (SQ) is another huge, nicely-correlated Bitcoin stock that's actually done even better than Bitcoin has this year, thanks in large part to the widespread move to online shopping and "contactless" payments. Its adoption of Bitcoin is going to work a lot like PayPal's has. Interestingly, I've read some credible reports that suggest PayPal and Square are the final destination for most of the Bitcoin that's being mined these days.

Square January calls aren't exactly cheap – their implied volatility (IV) is running in the low- to mid-50's, but I like the SQ Jan. 15, 2021 $220 calls to ride this higher, particularly since the next highest possible ceiling for Square is literally "off the charts" at $250.

If you play these two stocks, with or without Bitcoin holdings of your own, you'll get a taste of how profitable I think this coin is going to be going forward. What can I say? I love trading and owning Bitcoin – and I expect I'll love it even more over the next year.

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