It’s not the first time I’ve said it… And it won’t be the last — I love trading live in the Daily Profits War Room!
I also love it when short trades score MASSIVE profits — thank you, PayPal Inc. (Nasdaq: PYPL)!
There’s nothing like watching order flow hit the tape and jumping on a trade before the markets know what hit them.
It’s also a great barometer for market sentiment. And as I mentioned in Tuesday’s Blitz Daily, the bears are hungry!
Why wouldn’t they be after all the pain we saw in January?
And Monday’s bounce was just more fuel for the earnings season fire.
One of the names that kept seeing bearish flow was former digital payments superstar PayPal… And despite the risk, my longshot earnings short trade landed a monster overnight payout!
Colossal Overnight Win on Longshot Paypal Earnings Short Trade
The company that introduced most of us to names like Elon Musk and Peter Theil has fallen on hard times.
After hitting record highs back in July 2021, shares have been gutted by slowing growth figures, dropping more than 50% in value in six months!
Given the prior explosive growth, the stock has had its fair share of traders trying to buy the dip.
Most recently, the TV talking heads have been on the warpath, successfully pumping the stock around 15% in the lead up to earnings…
But all it did was convince a few more suckers that the knife was done falling, setting the table for another earnings disappointment to trigger forced selling from all the would-be bargain hunters.
This is why watching institutional options flow is so valuable… Because it gives us insight into what some of the best traders on Wall Street ae think about “unknown” events like earnings.
Since it looked like all the stars could be aligning for a cascade of PayPal selling, I took a small chance on some low-probability put options that were well out of the money going into Tuesday’s earnings… And it paid off — big time!
It’s Only a Disappointment If You’re on the Wrong Side
When Paypal’s disappointment hit the wire, we saw the stock break below the $150 level, chasing out a ton of stop-loss orders and sending my Feb. 4 $160 strike put options from $2 to $23.33 — a 1066.5% overnight win!
It’s a good feeling to check your account premarket and see this waiting on you…
Now let me be clear — this was a risky, lottery ticket bet that normally I’d be taking on my own and celebrating with a great night out full of steak, scotch and cigars…
But because this crossed my scanner when we were trading live in the War Room, members get access to a lot of candid trade ideas that most services would never see. And some of them used that valuable information to pull in some massive midweek profits on PayPal!
Cheers to you, my friends, and congrats on that MONSTER payday!
Check out the video below and I’ll break down the trade setup as I saw it in real time, and why you need to understand the risk before taking a trade like this.
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