Market News

October 19, 2016  Wed 8:02 AM CT

Traders are look for PayPal to rally by Thanksgiving.

optionMONSTER's market scanner detected the purchase of more than 5,100 November 41 calls were purchased for $0.84 to $0.89 yesterday. Volume surpassed the strike's open interest of 2,781 contracts, indicating that new positions were established.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

PYPL rose 0.89 percent to $39.83 yesterday but is down 3 percent in the last month. The online-payment service is scheduled to report earnings after the close tomorrow.

Overall option volume was 3 times greater than average in the name yesterday.

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