Sell PayPal Calls

By Linda McDonough • February 15, 2017

Sell to close the February 17, 2017 call on PayPal Holdings (PYPL) with a strike price of $41.00 at $.62 or higher. Symbol (PYPL170217C41)

There is still some value left in these calls that expire tomorrow. Although I am booking a loss, the calls are in the money and holders should sell them today.

If you do not sell them, and the stock remains above $41, you will be assigned the stock at $41.

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Michael S.

02/15/17 ‐ 11:19am ET February 15, 2017 at 11:19am ET

Hi Linda,
If you could use “Sell to Close” or “Sell to Open” or same for buy position in your title, it will help us to understand if it is a new position that you are posting or closing an old one.
Thank you

Linda McDonough

02/15/17 ‐ 12:06pm ET February 15, 2017 at 12:06pm ET

Hi Michael,
Great point. I will do that. Just an FYI I rarely sell options naked so most sells will be sell to close. Never the less, I agree including that in the headline is very helpful. Thank you for the suggestion.
Best,
Linda

LittleBitey

02/15/17 ‐ 6:18pm ET February 15, 2017 at 6:18pm ET

Outside of not having the funds, wouldn’t assignment be good above $41?

Linda McDonough

02/15/17 ‐ 7:06pm ET February 15, 2017 at 7:06pm ET

You are correct. It would be good but that is not my intention when recommending option trades. Certainly if a subscriber has the funds and wants to own the stock, the assignment is not disadvantageous. Good point- thank you for the clarification.

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Linda McDonough

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Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.