27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
PayPal Holdings Inc (NASDAQ:PYPL) is plummeting Wednesday after the company reported mixed financial results and issued weak guidance, but Jim Cramer thinks there is a larger underlying issue chasing buyers away from the stock.
"The reason why it's sinking the way that it is, is because people don't know what the multiple should be because the credibility of the company is so shot," Cramer said Wednesday on CNBC's "Squawk On The Street."
See Also: Why PayPal Shares Are Plunging Today
Cramer noted that he interviewed PayPal CEO Dan Schulman in November and thought that the company's outlook was promising. He was even adding to his PayPal position for the charitable trust around that time, citing "conviction in the fundamentals."
Cramer noted that PayPal now plans to adjust its customer acquisition and engagement strategy, which will hinder its ability to meet its longer-term customer account goals.
"Did I see this coming? Absolutely not," Cramer said, adding that he was "100% wrong" about PayPal.
He thinks PayPal sellers are willing to sell at any level because the company has lost all credibility. Money managers are likely saying "get that damn thing off my sheets, I never want to hear about PayPal again," Cramer said. "Their credibility is done, the stock is in half, they didn't tell us how slow things are — it's a disgrace."
PYPL Price Action: PayPal's 52-week high is $310.16. It's making new 52-week lows Wednesday.
The stock was down 24.91% at $132.02 at time of publication.
Photo: courtesy of PayPal.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!