Trade Call: Use $65 Put Option Strategy on PayPal (PYPL)

26 days ago

Mark Roussen

"The first one is going to be PayPal Holdings, stock ticker PYPL. And the stock is incredibly cheap... looking here at the charts, we could see the stock has been consolidating between the $70 and mid $60 range and it's ready to break higher. Lets take a look from an options perspective now at the November 21st $65 put, which would give us the potential obligation to buy the stock at a lower price. And for that, we would be earning $230 per contract for selling that option."

A trade call recommending exposure to PayPal through an options strategy. The speaker highlights that PYPL is undervalued relative to its 5-year average PE, driven by revenue growth from Venmo and efficient operating margins. The suggested play is to sell November 21st $65 put options to potentially accumulate shares at a lower cost while earning option premium income.

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