How To Buy PayPal Stock 35% Cheaper, Pocket 11% In The Meantime

Do you think PYPL stock is a good long-term bet at current levels? What about at a 30% discount at about $35 per share? If you think that is a steal and have some cash ready to go, here is a trade.

11% annualized yield at 30% margin of safety by selling put options.

• Sell a long-dated Put option expiring 3/19/2027, with a strike price of $35
• Collect roughly $208 in premium per contract (each contract represents 100 shares)
• That’s about 6.7% annualized yield on the $3,500 you’re setting aside for the possibility of buying the stock
• This cash parked in a savings or money market account will earn an extra 4.0%, taking total yield to 10.7%
• And you give yourself a chance to buy PYPL stock at deep discounted price of $35

However, this is not the only stock strategy in town. Trefis High Quality Portfolio is a sophisticated framework designed to reduce stock-specific risk while giving upside exposure.

Possible Trade Outcomes: You Win Either Way

Stock Price Outcome: What It Means For You

If PYPL stays above $35, you keep the full $208 premium – a 5.9% extra income over the next 326 days on cash that might otherwise earn you 4.0% or less. You never buy the stock and simply walk away with the cash.

If PYPL closes below $35, you’ll be obligated to buy 100 shares at $35. But thanks to a $208 premium, your effective cost basis is just $32.925 per share – a roughly 35% discount from the current level.

See a similar trade for buying CMCSA at a discount and getting paid to do it

And this is far from a speculative bet. PayPal processes over $1.5 trillion in payment volume annually, with a two-sided network of 220 million monthly active consumer accounts and 36 million merchant accounts that compounds in value over time. Its Braintree and Venmo platforms are deepening monetization, while a renewed focus on profitability under new leadership has already begun translating into stronger margins and aggressive buybacks. At $35, you’d be buying a payments infrastructure business at a steep discount to its earnings power.

Check out Buy or Sell PYPL Stock and see how PYPL’s key metrics compare with peers such as Block (XYZ) and Affirm (AFRM)

If you are not comfortable with options or stock-specific trades, portfolios are the way to go, as they can protect and grow wealth even better.

Smart Investing Begins With Portfolios

Single stocks can swing wildly, but staying invested matters. A well-built portfolio helps you stay invested, captures upside, and softens the blows from individual stocks.

Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.