Shares of PYPL have moved lower as the overall market has been under pressure.
Investors may also be frustrated with the company’s recent public relations fiasco after PayPal announced (and subsequentially backed off) a plan to fine members up to $2,500 for spreading misleading information.
PYPL is still a profitable fintech business trading at a reasonable valuation.
But the potential for consumer backlash makes the stock vulnerable.
Today’s market rebound gives us a good opportunity to close this income play with a very small loss.
By closing this trade, we’re managing our risk and freeing up capital that can be used for new income plays that are currently working well.
- Buy (to close) our PYPL October 21st $87.50 Put
- Limit $4.80 or less
- Executed 10:50
- BOT 1 PYPL Oct 21 $87.50 Put @ $4.48