Description: So after PYPL spun back off from EBAY, the stock has done nothing. It’s been over a year and it’s held under 40 any time it’s been tested.
Well now the energy has changed. Instead of a swift rejeection and more aggressive sellers, the stock has held its ground well. This is shaping up for a nice momentum trade higher.
Given how wide the ranges can be, I think it’s best to buy calls but keep your trade at “full risk” — meaning that the stop is baked into the price of the option. We also have earnings coming up which will help keep premiums elevated.