PayPal (PYPL) stock is bouncing today on “bought out” rumors. We see a real value proposition with this stock at these prices. We have wanted to buy more when the trend started to turn, we suspect this helps that cause as it is now breaking above the gap down day. We doubled our position size taking us to 400 shares owned and 4 covered calls. The details as follows: Bought 200 shares of PYPL at 44.20
Sold to open: PYPL April 17th (monthly) 52.50 strike call
Credit: 0.69
Max risk of this addition today = 43.51 (cost basis) x 200 shares = $8,702 in added risk with this addition.