PayPal Stock Keeps Falling; Try A Bear Spread
PayPal (PYPL) is currently in a nasty downtrend, falling below a declining 50-day moving average. The stock also put in a bearish candle yesterday, closing near the low of the day. So, let’s look at how to set up a bearish option trade in PayPal stock via a bear call spread.
PayPal Stock: Setting Up A Bear Call Spread
A bear call spread involves selling an out-of-the-money call and buying a further out-of-the-money call.
The strategy can score a profit if the stock trades lower,…