PYPL: Big Bullish Bet Into Next Week

PYPL continued to move higher on Friday after the price jumped on its positive third-quarter earnings report the day before. One big option trader was buying a lot of 1 Nov calls on Friday expecting PYPL to continue advancing next week.

PayPal has dropped almost 22% since it last reported earnings in late July. It cut its full-year revenue forecast then because of delays in product integration, pricing changes, and currency movements, but maintained its full-year earnings guidance.

PYPL, daily

For the third quarter, PYPL reported faster-than-expected growth in payments volume in the period and reported higher earnings than analysts had been expecting. PayPal said that it earned an adjusted $723 million, or 61 cents a share. That is up 5% from 58 cents a share in the same period in 2018, and is well ahead of analysts’ consensus expectation of 52 cents in adjusted earnings per share.

PYPL, Earnings Reports

Bullish Option Bet

Someone was buying a lot of 1 Nov’19 calls at the $106 strike during the morning hours on Friday. In total, over 3K of calls at this strike and expiration were purchased at an average price of $1.5 suggesting that the trader paid over $450K for this bullish bet.

PYPL, Time&Sales

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