PYPL251017P00080000 Option on PayPal Holdings

An 'In The Money' option is one with a strike price that the current stock price has already surpassed. Some options investors can hedge their PayPal Holdings positions using in-the-money options. They may also want to buy options with some intrinsic value, not just time value. However, because in-the-money options on PayPal Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

PayPal Holdings' Option Greeks for the contract ending on 2025-10-17 at a strike price of 80.0 measures the various factors that affect its cost and calculated using a theoretical options pricing model. It helps investors make more informed decisions about whether to trade this option contract or when to trade it. In addition to PayPal Holdings' option greeks, its implied volatility helps estimate the risk of PayPal Holdings stock implied by the prices of the options on PayPal Holdings' stock.

Put options written on PayPal Holdings grant holders of the option the right to sell a specified amount of PayPal Holdings at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of PayPal Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on PayPal Holdings is like buying insurance aginst PayPal Holdings' downside shift.

By selling PayPal Holdings' put option, the investors signal their bearish sentiment. A short position in a put option written on PayPal Holdings will generally make money when the underlying price is above the strike price. Therefore PayPal Holdings' put payoff at expiration depends on where the PayPal Stock price is relative to the put option strike price. The breakeven price of 71.72 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to PayPal Holdings' price. Finally, at the strike price of 80.0, the payoff chart is constant and positive.

PayPal Holdings' option chain is a display of a range of information that helps investors for ways to trade options on PayPal. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for PayPal. It also shows strike prices and maturity days for a PayPal Holdings against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PayPal Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. For more information on how to buy PayPal Stock please use our How to buy in PayPal Stock guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

Is Transaction & Payment Processing Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PayPal Holdings. If investors know PayPal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PayPal Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of PayPal Holdings is measured differently than its book value, which is the value of PayPal that is recorded on the company's balance sheet. Investors also form their own opinion of PayPal Holdings' value that differs from its market value or its book value, called intrinsic value, which is PayPal Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PayPal Holdings' market value can be influenced by many factors that don't directly affect PayPal Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between PayPal Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if PayPal Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PayPal Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.