Trading PayPal – Call Or Put Options

PayPal Holdings Inc (Nasdaq: PYPL) stock has a 52-week trading range of $30 on the low end and $42.55 on the high end. At its current price, it is in the upper quadrant of its 1-year high, and looks to be holding relatively steady. However there are several important developments taking place with PayPal that need to be considered before you trade the stock. A little research goes a long way with this company, and you will find that the musings of the chief financial officer of PayPal, John Rainey, are useful to gauge the future direction of the company. There are 3 principles that PayPal lives by and these have served the company well over time:

For those who are unaware, PayPal broke away from eBay in 2015 and has since performed superbly well, especially when compared to eBay. The company has adopted various cost-cutting initiatives to help drive up profits, reduce debt and expenses to deliver higher returns for shareholders and better value for members. The appointment of the new CFO at PayPal is a major strategic asset for the company. Rainey was formerly the chief financial officer of United Airlines, and he knows a thing or two about cutting costs in a highly competitive, low margin industry. He likens the performance of payments processing companies like PayPal to those of airlines, but he has no designs on reducing costs that would lead to PayPal falling behind the innovation & technology curve. The areas where PayPal has room for growth and improvement include pricing, with Rainey admitting that PayPal may be charging too much in certain areas and too little in others. However he was careful in his comments at the KBW Cards, Payments & Financial Technology Symposium in New York not to scare users away with talk of raising prices.

What are Analysts Saying about PayPal?