DailyPlay – PayPal (PYPL) and MRNA Update – March 16, 2022

MRNA Update

We will be adding the other half of the MRNA position that was originally opened last week: Buy to open April 22, 2022 $150/$175 Call Vertical @ $8.68 Debit

PYPL Bullish Opening Trade Signal

Strategy Details

Strategy: Call Debit Spread

Strategy Direction: Bullish

Details: Buy to open April 29, 2022, $100/$120 Call Vertical @ $6.95 Debit

Counter Trend Signal: This is a bullish strategy on a stock or ETF that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 1/10

OptionsPlay Score: 103

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade.

Investment Rationale

Many payment-related stocks have sold off substantially in the past several months, and perhaps none more so than Paypal (PYPL). Despite its straight-down move, it is now showing a deep oversold reading that held against the 2020 Covid low and is now showing its first Aggressive Sequential -13 signal of the entire decline (along with a new Setup -9). That gives me a pretty good sense this could bounce from here, and as such, we will look to put on this April 29th $100/$120 call spread. Yesterday, this spread closed at $6.12 mid-price.