Take advantage of a terrible trading day for Paypal

Paypal beat earnings estimates yesterday delivering $1.11/share vs. an estimated $0.86 cents, and shares are getting hammered today dropping 25% from $172 to $132. The company has delivered strong revenue and earnings growth for the past 3 years, and this drop in the share price is over done. The company trades at under a 30 P/E ratio and while there could be more downside risk in the stock it presents a good option trade today.

On the heightened volatility in PYPL we are selling the March 2022 $95 Puts for $0.80 cents. If shares drop below $94.20 we will buy shares at the same net price.