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52-Week Low Alert: Trading today’s movement in PAYPAL HOLDINGS CORP

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Quantchabot has detected a promising Bear Call Spread trade opportunity for PAYPAL HOLDINGS CORP (PYPL) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PYPL was recently trading at $184.32 and has an implied volatility of 40.41% for this period. Based on an analysis of the options available for PYPL expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $157.95-$184.34 at expiration. In this scenario, the average linear return for the trade would be 80.05%.

52 week low: PAYPAL HOLDINGS CORP recently reached a new 52-week low at $182.43. PYPL had traded in the range $184.28-$310.16 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if PYPL maintains its current direction and does not revert back to pricing on the bullish side of $184.32 on 21-Jan-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if PAYPAL HOLDINGS CORP closes at or below $184.65 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.43% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

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