February 3, 2021 Terry’s Tips Trade Alert – Earnings  Eagle Portfolio

We are opening spreads on PayPal (PYPL), which reports earnings after the close today. Options are pricing in a move greater than the historical move. We are adding four calendars now and may add more later to keep delta in line:

BTO 1 PYPL 19Mar21 240 puts (PYPL210319P240)
STO 1 PYPL 05Feb21 240 puts (PYPL 210205P240) for a debit of $7.30 (buying a calendar)

BTO 1 PYPL 19Mar21 250 puts (PYPL 210319P250)
STO 1 PYPL 05Feb21 250 puts (PYPL 210205P250) for a debit of $7.70 (buying a calendar)

BTO 1 PYPL 19Mar21 250 calls (PYPL 210319C250)
STO 1 PYPL 05Feb21 250 calls (PYPL 210205C250) for a debit of $7.80 (buying a calendar)

BTO 1 PYPL 19Mar21 260 calls (PYPL 210319C260)
STO 1 PYPL 05Feb21 260 calls (PYPL 210205C260) for a debit of $7.35 (buying a calendar)


Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Terry