Shares of Paypal Holding (NASDAQ:PYPL) are plunging 11.1% to trade at $54.62 following a Bloomberg report that Advent and Stripe walked away from acquisition talks after offering more than $50 billion for the company. The three involved parties have yet to comment on the report.
Should these losses hold till the end of today's session, PYPL will mark its third consecutive daily decline, its longest losing streak since late May, and its worst session since February. Over the past six months however, the equity has gained 18%.
Options are reasonably priced at the moment, per PYPL's Schaeffer's Volatility Index (SVI) of 29% stands higher than just 7% of all other readings from the past year. This implies that near-term option traders are pricing in relatively low volatility expectations.
It's also worth noting that PYPL's Schaeffer's Volatility Scorecard (SVS) sits at a high 91 (out of 100), indicating the stock has tended to exceed option traders' volatility expectations during the past year.
