52-Week High Alert: Trading today’s movement in PAYPAL HOLDINGS CORP $PYPL

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Quantchabot has detected a promising Bull Call Spread trade opportunity for PAYPAL HOLDINGS CORP (PYPL) for the 17-Apr-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

PYPL was recently trading at $122.23 and has an implied volatility of 23.78% for this period. Based on an analysis of the options available for PYPL expiring on 17-Apr-2020, there is a 34.13% likelihood that the underlying will close within the analyzed range of $122.58-$135.46 at expiration. In this scenario, the average linear return for the trade would be 50.59%.

52 week high: PAYPAL HOLDINGS CORP recently reached a new 52-week high at $122.52. PYPL had traded in the range $93.10-$122.19 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if PYPL maintains its current direction and does not revert back to pricing on the bearish side of $122.23 on 17-Apr-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if PAYPAL HOLDINGS CORP closes at or above $121.45 on 17-Apr-2020. Based on our risk-neutral analysis, there is a 53.71% 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.