Visa Performs on a Down Day
November 19, 2009 12:41 PM
Visa (NYSE: V) put in a massive turn around this morning, the stock plunging with the overall market just to make a U-turn and bee-line into positive territory. Visa is hovering just under its 52-week high near 82.00. A block of 10,000 Nov. 80 calls have been purchased on the offer just a few minutes ago for total volume of over 20,000 contracts on the day.
Visa’s activity looks quite bullish. In addition to the Nov. activity, there are also some call 80/85 call spreads that have been put on in the Dec. contract. I like Visa and believe they are firing on all cylinders. Instead of fronting the cash for a stock position, I would consider selling the Dec. 80 or 75 put and buying the Dec. 90 call for a credit of either 1.65 or 0.44, respectively.
