Aug 2020: PYPL $190 – $195 Bull Call Spread

Stock

PYPL

Trade Structure

$190- $195 Bull Call Spread

Trade Date

08/13/2020

Price Paid

$250

Expiration Days

9/18/2020

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

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Trade Rationale

This is a post earnings play. This is my typical post-earnings setup that you will find me trading all the time. It is characterized by a post-earnings spike, followed by a pullback. PYPL spiked up and kept going higher after earnings. Sometimes, this does happen and you don't get any opportunity to get in on a trade. However, PYPL did pullback to pre-earnings trading range/support level which gave us a great opportunity to get into a trade.

Trade Selection Criteria

Overall market movement

This is a post-earnings trade. My usual mean reversion parameters don’t apply here. These trades are based on Support/Resistance only

N/A

No Earnings or Significant News

Earnings are behind us and were announced on 7/29

Bollinger Bands outside Keltner Channels

This is a post earnings trade – our regular mean reversion indicators don’t apply here.

N/A

RSI Analysis

This is a post earnings trade – our regular mean reversion indicators don’t apply here.

N/A

ADX Analysis

This is a post earnings trade – our regular mean reversion indicators don’t apply here.

N/A

Trade Analysis

Analysis will be updated when we close this trade.

Trade Outcome

PENDING

Profit/Loss

$N/A

Beginning Account Balance

$6,200

Ending Account Balance

$Pending

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