TopOptionAlert
Oct 27, 8:41 AM
$PYPL NOV20 57C · still actionable
Zone:
$54.61 to
$55.37
Invalidation: close under
$54
Objectives:
$57.02, then
$57.95
The math: up 3.7% to the first objective and 5.4% to the second, against 1.8% risk on the invalidation, almost 3 to 1 to the second.
Dear friend, this is a swing into a morning that matters. PayPal slipped 3.6% on Monday to 54.99, landing right above the 54 dollar floor it held in early October, and this morning before the open it reports third quarter results with analysts looking for 1.31 per share. Think of it like a runner who stumbled just before the starting gun: the company has beaten estimates in 7 of its last 8 quarters, so a steady report gives buyers a simple reason to walk the stock back to 57.02 first and then toward the October high at 57.95. If it closes under 54, the floor gave way and this idea is done.
P.S. Watch the 8 AM ET call first, because the tone there decides whether the bounce holds.
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