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PayPal Stock Keeps Falling; Why This Bear Call Spread Could Bag A $185 Profit

·2 min read
PayPal Stock Keeps Falling; Why This Bear Call Spread Could Bag A $185 Profit
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PayPal is currently in a nasty downtrend, falling below a declining 50-day moving average. On PayPal stock, an options trader could execute an August-expiring bear call spread using the 75 strike as the short monthly call option and the 80 strike as the long call. If executed at that price, the maximum profit on the trade would hit $185 per contract with a maximum risk of $315.