{"id":5250,"date":"2019-07-15T13:17:02","date_gmt":"2019-07-15T17:17:02","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=5250"},"modified":"2019-08-03T11:59:57","modified_gmt":"2019-08-03T15:59:57","slug":"back-in-paypal-with-a-leap","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=5250","title":{"rendered":"Back in PayPal With a LEAP"},"content":{"rendered":"

\"\"<\/a>Last Thursday, July 11th, I sold 100 shares of PayPal (PYPL). In the post reporting that sale I said I\u2019d be back in PYPL very soon. Well I just jumped back in with a LEAP option.<\/p>\n

On 8\/23\/17, almost 2 years ago I bought 100 shares of PYPL at $60 per shares. On 7\/11\/19 I sold those shares for $120 doubling my money. I said I\u2019d be back involved in the stock so why did I sell in the first place. Well, I sold 100 shares at $120 locking in $12,000 giving me a $6000 profit. I love taking profit but I still want to be in the stock so today I bought a 5 contract LEAP. I really like this option because I took money off the table while having more potential going forward. I bought 5 contracts of the PYPL 6\/19\/20 $120 Call for a premium of $14. The 5 contracts (100 shares per contract) has me controlling 500 shares of PYPL for a total of $7000. I brought in $12,000 on 100 shares and I\u2019m now controlling 500 shares for an outlay of $7000. If this stock goes up I\u2019ll make more money with my 5 contracts than I would owning 100 shares. Plus I added the balance of the $12,000 ($5000) to my account to trade with.<\/p>\n

Buy to Open 5 PYPL 6\/19\/20 $120.00 C @ $14.00 ($7000)<\/h4>\n

There are a few reasons why I love this position. #1, I still love the stock. #2, As I write the stock is at $120.60 and the Strike Price is $120. I\u2019m already 60\u00a2 In-the-Money<\/a><\/span> and I have a year for the stock to go up before expiration. #3, This option has a Delta<\/span><\/a> of .59. For every $1 the stock moves my option will move 59\u00a2. My 5 contracts will move much more than the 100 shares with less money invested. My rule of thumb is to get a Delta of at least 50\u00a2. 59\u00a2 is a very nice Delta. Plus, this Delta will go up as the stock goes up.<\/p>\n

LEAPS, long term options are the safest way to buy options. Since this option doesn\u2019t expire for another year, I give this trade a Risk Factor 2<\/strong>.<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Last Thursday, July 11th, I sold 100 shares of PayPal (PYPL). In the post reporting that sale I said I\u2019d be back in PYPL very soon. Well I just jumped back in with a LEAP option. On 8\/23\/17, almost 2 years ago I bought 100 shares of PYPL at $60 per shares. On 7\/11\/19 I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-5250","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-1mG","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5250"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5250\/revisions"}],"predecessor-version":[{"id":5432,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5250\/revisions\/5432"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}