PYPL - a nice swing put opportunity

10 août 2020

Please see notes on chart, and look at daily and weekly chart to form your perspective. Note how high price is above 10sma (around 179), on weekly!
I suggest weekly 295 or 290 puts, or go out further and buy 180 puts. Use 15-30 min chart to plan your entry.

11 août 2020

Note

Yesterday I bought weekly 195 puts at $2.56 and sold them for $4.40. I held a few contracts overnight and sold them this morning for $8.00.
I primarily use weekly options. When I feel highly confident about a trade, I am willing to hold overnight, despite theta loss. To counter the higher risk, I usually hold overnight on Monday or Tuesday and only for one night, and it will be a small amount of capital. Also I have to be ready (mentally) the next day with my exit plan.
In this example, when the price dropped at open, I decided to take advantage of any IV increase and sell the rest of my puts. I needed to be aware that the daily trend is still up, and the stock can bounce of 20sma back up towards 10sma.
Now I can use 30 min and daily chart to buy puts again, because I expect more downside as per weekly chart.