In this week’s Options Trade Of The Week, we will use our Spotlight Power Trader system to identify a bearish trade opportunity on PayPal (Symbol: PYPL).
With the market making a big move higher over the last few weeks, we are left with many overbought markets. This is especially true with many of the Nasdaq names.
PYPL has made a really nice mover higher over the last month pushing up over 20% since May 2018 and as a result, we are looking to sell a call spread to benefit from either a pullback or a period of consolidation.
Selling a call spread will give us 5 different ways of making money on the trade. The best part about this trade is it will only take $60 per spread to put on which makes this a great trade for all types of account sizes.
Options Trading Video – Selling Call Spread On Paypal
In the video below, I will walk through the thought process on selling a Call Spread on PYPL and also piece it together from start to finish.
Next week we will recap our open trades and also look to add a new trade of the week.