Options Traders Ring the Register with PYPL

Paypal Holding (PYPL) reached a high of $124.45 on February 19th but fell to a low of $103.72 as the market crashed with news of the corona-virus.  PYPL, along with the market made a nice little bounce, but the negative news kept getting worse.  On March 3rd, we noticed the futures were looking weaker than expected and PYPL was holding a support level at $112.95.  If this level was breached combined with the market moving lower then we could get a nice move down to our next support level of $109.69 and the 200 day simple moving average at $109.87.

During our Tuesday morning webinar, our TNT subscribers watched as PYPL tried to move higher but was overwhelmed by bearish pressure.  The stock then proceeded to fall below the support level of $112.95 where they jumped into the 6MAR 113 put options for about $1.90.

Option traders took profits on the put options as the stock traded below the 200 day simple moving average a few hours later at $109.87.

The options were closed for about $4.00.  This resulted in a $2.10 profit on a $1.9 risk or 110% ROI.