TopOptionAlert
Oct 24, 7:54 AM
$PYPL OCT30 59C · still actionable
Zone:
$56.60 to
$57.40
Invalidation: close under
$55.40
Objectives:
$60, then
$64
The math: up 5.2% to the first objective and 12.2% to the second, against 2.8% risk on the invalidation, better than 4 to 1 to the second.
Picture this. Tuesday morning before the open, PayPal reports, and the stock has spent two weeks climbing from 52 up to 57 while the doubters wrote their downgrades. Friday the calls outnumbered the puts more than ten to one, and the most crowded strike on next week's board is the 59 line, which tells you where the crowd thinks this is headed. This is a swing into the earnings print, riding the trend that is already in motion instead of guessing at the number. The only question is whether Tuesday confirms what the price has been whispering for two weeks.
P.S. Barclays has an equal weight and a 56 target while the stock sits at 57.02, so Wall Street is not leaning into Tuesday the way the option crowd is.
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