This PYPL bull put spread showed up on our scanner this morning. What I like about this trade idea is that the stock gapped lower after announcing earnings. This happened even after the company reported better than expected earnings and revenue. It might have been an over reaction. Plus, the stock has some potential support right around the short put strike (44.5) from prior pivots. Implied volatility and option prices may continue to fall after the announcement which is helpful for a negative vega position like this bull put spread.
