PYPL
$PYPL PayPal Bullish Hammer Last Week$PYPL PayPal bullish hammer on the weekly chart after steep sell-off last week. Both RSI and MFI now appear to have bottomed. Expecting another strong earnings beat later this week. Next bull run could make a push for the century mark. Targeting $95-$100 area by January.
Note: Informational analysis, not investment advice.
Rising Wedge Formation: PayPal Holding Inc.Clear sign of a Rising Wedge Formation, Looking to long PYPL with entries around the .786 fib level while s/l placed below the yearly lows. Looking to T/P1 at around the .382 fib level & T/P2 at around the .236 level.
Short-Term Shorts are viable for PYPL marked at 'S?' for those who are interested in trading the trend. Remember the trend if your friend.
PYPL: The New Bank & $80+ PT Range w/ BonusPaypal is and will always be a permanent, financial player. The Venmo acquisition: brilliant. Square, sure, it's growing and has potential. Tell me one person back in 2014 or 2015 that had heard of it over Venmo. Brand recognition and explosive growth make it one of the pinnacles of the PYPL story. Was it expensive at $80? Yes, absolutely. Is it expensive now for what all it has going? Debatable, but I guarantee that it will rise as anything else financially responsible and relevant will.
Technical trading up, over $80 is doable. With a perfect environment and more than likely absurd EC beats, expect a path to $100 if the market is stable and experiencing growth momentum. $100+ prime and over, take your money and sell. Don't be greedy. The Venmo story is real, relevant, impactful and unique. The eBay bs is now absorbed and incompetently understood. No one is thinking of it, so PYPL is a pure, no news related play.
PYPL: the stock to buy after market pullbacksPYPL has a history of strong comebacks after a sell. I don't believe this will be any different. While this is one of the most violent sell offs, and it was certainly due to more than illogical fear (eBay abandoning them), it is a healthy company that should make a quick comeback.
Tell me your ideas below.
Going long PYPL on MondayPYPL is printing a bullish engulfing hammer candlestick over candlestick price bar on heavier above average volume with my momentum/trending oscillators confirming the price move. I am going long PYPL on Monday using a limit (GTC-BUY-LMT) order @ 75.87. I will have three trailing sell stops (GTC-SELL-STP) @ 73.50, 72.55, and 68.60 to protect my initial invested capital in case PYPL does not move higher immediately. I am expecting a measured move similar to all or part of the previous uptrend from February '17 - November '17.
THE WEEK AHEAD: GE, CSX, PYPL EARNINGS; MBI, PEARNINGS
GE announces earnings on 10/20 (Friday) before market open. With a background implied volatility in high 20's (28% as of Friday close), it isn't particularly high from a premium selling standpoint, but I could see this as a potential acquisition opportunity via a November 17th 22 short put (paying .32 at the mid), in spite of the fact that the company's being a decent dividend bearing play is waning. Alternatively, the November 17th 22 short straddle pays 1.37 at the mid. Going pure volatility contraction play closer in time doesn't pay all that much, with the October 27th 22 short straddle brining in short of 1.00 at the mid.
CSX announces on Tuesday before market open. Background implied volatility's in the mid-30's which places it in the upper fourth percentile of where it's been over the past year. The October 27th 51/55 short strangle's paying 1.24 at the mid, with the comparable defined risk iron condor at 48/51/55/58 paying .92.
PYPL, with a background implied around 30 goes on 10/19 (Thursday) after market close, with the Oct 27th 65.5/71.5 short strangle paying 1.55, and the delta neutral 62.5/65.5/71.5/74 iron condor in the same expiry paying .95.
NON-EARNINGS
MBI, with a background implied of 66 (at the very high end of its range), probably only makes sense as a short put/acquire/cover cycle trade, with the November 17th 6 short put paying .35 at the mid and the 7 paying .76. The former would yield a cost basis of 5.65 on assignment; the latter, 6.24.
P has a background implied of 67 (mid-range over the past year), with the December 1st 7 short put paying .27 (cost basis of 6.73 if assigned) and the at-the-money 8 paying .66 (7.34 cost basis on assignment).
VIX/VIX DERIVATIVE TRADES
Currently, no term structure or contango drift trades are in the offing. The first VIX future trading at >16 is way out in May, and the VIX/VXST ratio finished Friday's session at around .84.
PAYPAL (PYPL) Strong uptrend - Long TermBASIC INFO:
PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide.
Revenue seems to be increasing well over the last few year as well as earnings per share. Earning surprise looks great over the last 4 quarters. Consensus on Earnings per share forecast is strong over the next few year and a 17% earning growth rate for the long term 5 year forecast. Paypal is still ahead in price/earnings compared with the industry average.
SETUP:
Posable time for long position seems now with a initial target of 64.95 and a stop of 57.59 with the option to add to the position on pullbacks to the trend line. Lock profit in by adjusting stops up.