Joe Tigay's Example Trade In Paypal (PYPL) Ahead Of Earnings

Joe Tigay gives his example trade in PayPal, using a weekly risk reversal. He will sell the May 7 245/235 put spread for $2.20 and buy the May 7 267.50 call for $1.40 for a $0.80 net credit. He says he's happy to own it at a lower price, and if it goes higher, he's participating.

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Joe Tigay's Example Trade In Paypal (PYPL) Ahead Of Earnings

Joe Tigay gives his example trade in PayPal, using a weekly risk reversal. He will sell the May 7 245/235 put spread for $2.20 and buy the May 7 267.50 call for $1.40 for a $0.80 net credit. He says he's happy to own it at a lower price, and if it goes higher, he's participating.