TopOptionAlert
Oct 25, 5:01 AM
$PYPL NOV20 59C · still actionable
Zone:
$56.62 to
$57.42
Invalidation: close under
$55
Objectives:
$60, then
$64
The math: up 5.2% to the first objective and 12.2% to the second, against 3.5% risk on the invalidation, better than 3 to 1 to the second.
Dear friend, this is a swing into earnings, and the picture is simple to hold in your head. PayPal closed Friday at
$57.02 after building higher lows from the 52 area up to the 55 area, and it now sits above its 50 day and 200 day averages with a fresh 30 day high in the 58 area just above it. Tuesday October 27 brings the report before the open, with the street looking for
$1.31, and a number that clears that low bar gives buyers a plain reason to push toward 60 and then 64. If price instead closes under 55, the base story is broken and the plan steps aside with it.
P.S. Watch the 58 area first, because a close above it turns that recent high into the next floor.
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