After PayPal (Ticker: PYPL) reiterated on Monday that they are considering adding stock trading to their platform, the stock jumped $11.
And has created a bull flag for the remainder of the week. Check it out:
On top of the bull flag, Friday’s candle is a bullish engulfing candle.
I think PYPL is going to close the gap created on July 29th. That would take it back to $296.71.
Looking at the options, I like the Sep17 expiration cycle:
I like buying the Sep17 290-strike calls and selling the Sep17 300-strike calls, paying up to $2.90.
I will take my losses on this spread if it trades down to $2.00, and begin to take profits around the $5.00 area.
Thanks for Reading … See You Next Tuesday!