



Covered Call On PYPL Stockįor every 100 shares held, the covered call strategy requires the trader to sell one call option with an expiration date at some time in the future. Therefore, the following discussion on PYPL stock is offered for educational purposes and not as an actual strategy to be followed by the average retail investor. Most option strategies are not suitable for all retail investors. Capital Link Global Fintech Leaders ETF (NYSE: KOIN)įinally, investors who expect PYPL stock to bounce back in the weeks ahead could consider setting up a covered call.Invesco NASDAQ Internet ETF (NASDAQ: PNQI).ETFMG Prime Mobile Payments ETF (NYSE: IPAY).Grayscale Future of Finance ETF (NYSE: GFOF).Their target price would be $118.50, as per the target provided by various quantitative models.Īlternatively, investors could consider buying an exchange-traded fund (ETF) that has PYPL stock as a holding. PayPal bulls who are not concerned about short-term volatility could consider investing now. Afterwards, PYPL shares could potentially start a new leg up. Our expectation is for PayPal stock to build a base between $70 and $75 in the coming weeks. In other words, implied volatility is trending higher, while options markets suggest increased choppiness ahead, especially as the Q2 reporting period approaches. PayPal’s current implied volatility is about 5% higher than the 20-day moving average. Implied volatility typically shows traders the market's opinion of potential moves in a security, but it does not forecast the direction of the move. In other words, fundamental valuation suggests shares could increase by more than 54%.Īs part of the short-term sentiment analysis, it would be important to look at the implied volatility levels for PYPL options as well. The 12-month price range currently stands between $80 and $220. Wall Street has a 12-month median price target of $118.50 for the stock, implying an increase of about 68.4% from the current price. com, PYPL stock has an "outperform" rating. What To Expect From PYPL StockĪmong 52 analysts polled via Investing. PayPal is expected to release Q2 figures on Aug. Prior to the announcement of the first quarter metrics, PYPL stock was changing hands around $83. Therefore, Wall Street now expects the fintech giant to look for ways to better monetize its current user base. Management forecasts adding only 15 million to 20 million new active users in 2022-around a third of the growth in 2021. While total payment volume grew 15% YoY to $323 billion during Q1, growth in new active users will likely decelerate through 2022. Adjusted diluted EPS is expected to come in at 86 cents, down from $1.15 in the same period in the previous year. “I’m pleased our first quarter results exceeded our guidance on revenue and earnings, and we continue to grow faster than the rate of e-commerce.”įor the second quarter, management forecasts net revenue to grow approximately 9%. Cash and equivalents ended the period at $15.1 billion.
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Free cash flow of $1.1 billion declined 32% YoY. However, adjusted earnings per share fell to 88 cents, down from $1.22 per share a year ago. Revenue increased 8% to $6.5 billion year-over-year. The fintech company released Q1 metrics on April 27. The market capitalization currently stands at $85 billion. However, shares have plunged to a multi-week low of $67.58 at the end of June this year, a decline of 78% from its peak value. On July 26, 2021, PYPL shares went over $309 to hit an all-time high.
