The security has been popular with options bulls for some time
PayPal Holdings Inc (NASDAQ:PYPL) is causing quite the stir today, after its second-quarter profits matched estimates. The company's adjusted operating margins of 21.4% missed forecasts, however, casting a shadow on its upbeat revenue outlook while also spurring growth concerns. At last check,
PayPal stock is down 11.2% at 64.99.
Options traders aren't shying away, with 381,000 calls and 199,000 puts exchanged so far, which is four times the intraday average volume. The weekly 8/4 65-strike put and 65-strike call are the most popular contracts, with positions currently being opened at both.
The options pits have favored bullish bets for a while. This is per PYPL's 50-day call/put volume ratio of 3.76 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 97% of readings from the past year.
Last seen down 11.3% to trade at $64.93 at last check, the shares are on track to close below their 80-day moving average for the first time since July. The security is also on track for its biggest single-day percentage loss since May 9, and now carries a 33.8% year-to-date deficit.
