Repairing Underwater Positions in PayPal Stock (PYPL) Collapse

I have received a number of emails requesting some repair ideas for short put positions caught in the decline of PayPal Stock (PYPL). The decline has been huge and severe. Since August 2021 the stock has lost 66% of its value in a stunning collapse that no investor or analyst predicted. In 2022 the sell-off has sharpened but as bad as it is, many investors are now giving up when probably the stock is near or close to a bottom.

This strategy article for members is 4400 words in length and requires 11 pages if printed. You might need refreshments and nourishment while wading through this. article. There are 5 repair strategies outlined in full explaining all key aspects of using the repair method. All of them will work to repair this kind of trade in PayPal or any other stock. The methods range from quickly such as a month or two, to a longer period of perhaps 6 or 8 months. All prices referenced are as of PayPal’s close on Friday Feb 18 of $103.65, almost at the day’s low.

For members, if you have questions on the repairs, email me or use the members only forums where I have opened a discussion topic on this stock and the repair trades.

  The rest of this strategy article is for FullyInformed members.

5 Repair Strategies For PayPal Deep In-The-Money Naked Puts – Investor Questions

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Please read the full disclaimer.