Struggling Paypal Stock Popular Among Options Bulls

Year-over-year, PYPL has shed more than 61%

Digital Content Manager
Feb 14, 2022 at 2:51 PM
facebook twitter linkedin


Paypal Holdings Inc (NASDAQ:PYPL) is down 1.3% to trade at $113.84 at last check. The last time we checked in with the security, it was sinking after the company issued a poor current-quarter forecast. The equity has since moved lower, hitting a fresh two-year low of $113 earlier today, with the 20-day moving average rejecting a rally attempt earlier this month before sending the stock even lower. Year-over-year, PYPL has shed 61.5%. 
  

PYPL 20 Day

In addition, Paypal stock just made it to Schaeffer's Senior Quantitative Analyst Rocky White's list of names that have attracted the most weekly options volume in the last two weeks. Digging deeper, 2,404,574 calls and 1,314,345 puts have been exchanged. The most popular contract during that two-week period was the weekly 2/11 130-strike call, followed by the 2/11 125-strike call. 

 MAO 214

Analysts remain optimistic towards Paypal stock, with 22 of the 28 in question carrying a "buy" or better rating. What's more, the 12-month consensus target price of $187.25 is a 64.5% premium to current levels.

It's also worth noting the security's Schaeffer's Volatility Scorecard (SVS) sits at 92 out of a possible 100. This suggests that PYPL has exceeded options traders' volatility expectations over the past year. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners