“Cut-to-the-Chase” Recommendations
- Week Beginning October 10, 2016 -


by Ian Harvey

IMPORTANT NOTE: There is no stop-loss or pre-determined sell price recommended – this is left to the discretion of the individual trader.


Wednesday, 12th October, 2016

Paypal Holdings Inc (NASDAQ:PYPL) Calls

 **OPTION TRADE: Buy the PYPL OCT 21 2016 40.000 call at approximately $0.80. Sell price is left to your own judgment.

Paypal Holdings Inc (NASDAQ: PYPL), a technology platform company, which enables digital and mobile payments on behalf of consumers and merchants around the world, is set to deliver third-quarter earnings on October 20th. Ahead of the print, analysts remain bullish on the online payment giant with optimism that the print will prove positive for shares, anticipating “solid” results.

It is likely PayPal’s medium-term guidance will see a boost on the heels of both on core business trends coupled with Visa Inc (NYSE:V) and Mastercard Inc (NYSE; MA) partnerships, contending, Last quarter, PYPL declined to address potential impacts of the Visa partnership on medium-term guidance, as the MA partnership had not yet been announced. On the 3Q call, it is believed that the financial implications of the partnerships will be addressed.

Jefferies analyst, Jason Kupferberg, is very bullish, and as such, reiterates a Buy rating on PYPL with a price target of $48, which represents just under a 22% increase from where the shares last closed.

The analyst expresses, “Our latest deep dive into the competitive landscape concludes that PYPL’s first mover advantage, investments in innovation, and sticky consumer/merchant relationships will prevent ‘disruption’.”

Ultimately, “Don’t confuse competition with ‘disruption’; PYPL still the best way to play digital/online payments. As expected, Apple Pay is now live in-browser, and we don’t expect a noticeable impact on PYPL’s business, as there is simply no compelling reason for existing PYPL users to switch,” Kupferberg concludes, believing even amid competition, considering the giant’s “differentiated social media integration and loyal/growing user base,” Paypal remains in a stellar position.

Four investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and twenty-one have assigned a buy rating to the company. The consensus price target stands at $44.50, marking a nearly 13% upside from where the stock is currently trading.

Paypal Holdings has a market capitalization of $46.26 billion, a P/E ratio of 35.58 and a beta of 1.09. Paypal Holdings has a 12 month low of $30.52 and a 12 month high of $41.75. The firm’s 50 day moving average price is $39.23 and its 200 day moving average price is $38.44.


Wednesday, 12th October, 2016

Apple Inc. (NASDAQ:AAPL) Calls

  **OPTION TRADE: Buy the AAPL OCT 21 2016 120.000 call at approximately $0.45. Sell price is left to your own judgment.

Apple Inc. (NASDAQ: AAPL), a company that designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications, is still running hot despite the market taking a downturn yesterday.

Apple is seeing plenty of bullish forecasts. Apple is in the midst of opportunities for market share expansion placing the company at a welcome, competitive advantage.

Things are looking good for Apple amid a strong iPhone 7 U.S. launch -- “healthy” data points presently indicated in China, and it’s arch-rival Samsung literally exploding in Apple’s dust with the disaster that has become of the Note 7.

On back of a “stronger than seasonal” third quarter it is believed that “the doom and gloom” around Apple is starting to thaw.

The tech titan is likely to remain as a top pick for the second half of 2016 and plenty of analysts are bullish – one such, for example, is top analyst Brian White, from Drexel Hamilton, who reiterates a Buy rating on shares of AAPL with a $185 price target, which represents a 57% increase from where the stock is currently trading.

White notes, “In early September, a flurry of media outlets reported the Galaxy Note 7 was catching fire and exploding, forcing Samsung to halt shipments of the new device. Today, the NY Times reported that Samsung will stop producing the Galaxy Note 7 and we believe this provides a tailwind behind what we believe is already a healthy iPhone 7/7 Plus launch.”

“With original market expectations for approximately 10-14 million Galaxy Note 7 units in H2:2016 (availability began on August 19), we believe Apple has an opportunity to pick up at least 8 million incremental units in CY:16. Moreover, this fiasco could permanently damage the Samsung brand in the smartphone market, a big opportunity for Apple to gain market share,” White concludes.

Four investment analysts have rated the stock with a sell rating, nine have issued a hold rating, forty-one have assigned a buy rating and two have given a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and an average price target of $126.13.

Apple has a market capitalization of $614.61 billion, a PE ratio of 13.30 and a beta of 1.22. Apple has a 12 month low of $89.47 and a 12 month high of $123.82. The company has a 50-day moving average price of $110.36 and a 200 day moving average price of $103.24.




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