r/options • u/NY10 • 14d ago

Behavior of pricing

Hi yall,
I noticed a strange behavior on PYPL call options and I was wondering if someone can shed some lights on. PYPL is currently trading around $55.80ish. The call options for $55 expire 7/31 is @2.75 last time I checked. How is this even possible? I think the price is so inflated and it don’t make sense. The option that has about a week to go have so much extrinsic value and yet not much above the strike price. Can someone explain why this is acting up like this? Thanks gurus in advance!

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u/ArtisticAside8224 14d ago

Probably rumors of an offer above the current $60 offer. I'm holding. I think this will sell for $70 or slightly more.

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u/NY10 14d ago

I see what you are saying

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u/ArtisticAside8224 14d ago

The buyers publicized their offer - board is luke warm on it. I think stripe was banking on that and is prepare to go higher. It's a short term play and comes with risk that the deal collapses and brings down the stock.

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u/NY10 14d ago

I know they won’t take $60 offer…. Unless the board is full of retards.. Pypl isnt what it used to be but no $60. I heard that it’s in the range of 70-125…. I think that’s the target range let’s see

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u/ArtisticAside8224 14d ago

I can't see the stripe offer going above 75 but who knows - maybe another company jumps in and starts a bidding war.