PayPal Entry Reassessment at $90
"It wasnt really making new lows. So you could say, okay, its still, the space is still forming, but I need more evidence. It probably will be a better buy to buy at $90 after weve get some confirmation of good news."
The manager observes that while PayPal (PYPL) has stabilized after forming a base, the current price action indicates that waiting for further confirmation may offer a more attractive entry point around $90, improving the asymmetry and lowering downside risk.
Conditional Buy Call for PayPal (PYPL)
"I have a list of great companies that I plan on buying before October ends, but only if they hit the value that I need them to hit. When the price makes sense, I purchase because a great company at the wrong price can become a terrible investment."
The speaker explains why PayPal is an attractive investment due to its shift from a basic payment button to a digital payments ecosystem with recurring revenue from Venmo, buy-now-pay-later, crypto, and even ad-platform initiatives. Despite its current depressed price, the fundamental metrics such as free cash flow and return on capital remain strong. The trade call is conditional on the stock reaching the right value, with support around $50 and a potential run if volume increases.
Trade Call: Use $65 Put Option Strategy on PayPal (PYPL)
"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.
PayPal Rises on Partnership with Google
"PayPal jump popped about 3% on that partnership with Google."
PayPal is experiencing a modest rally driven by its new strategic partnership with Google, contributing to renewed investor optimism in the near-term.