Oppenheimer's Alon Rosin is positioning for a double-digit move in Square.
He expects that will happen when the payment stock delivers quarterly earnings numbers after Wednesday's market close.
Based on the trading activity right now, Rosin sees Square shares moving 10% in either direction.
"But we're looking for a way to play some upside given the pressure. Upside may be a little capped," the firm's head of institutional equity derivatives told CNBC's "Trading Nation" on Tuesday. "So, we're using a call spread right now. We're looking at the Nov. 8 $63 - $68 call spread around 1.25 here with the stock at $61."
The stock closed Tuesday at $61.06 a share, down 2.1%.
Square, whose CEO is Twitter chief Jack Dorsey, has tanked 24% since Aug. 4. It's a massive departure from the run it has had over the past three years. Over that time frame, it's up more than 400%.
"It's getting caught in this growth sell-off right now," said Rosin. "We're just not seeing the demand for these names."
According to Refinitiv, Wall Street expects Square to earn 20 cents a share on $596.4 million in revenue in the third quarter. It earned 13 cents a share on $431.1 million in revenue in the period a year earlier.
"Momentum selling off has affected the payment names, Square in particular," Rosin said.
Disclosure: Rosin and his firm has positions in Square.