He analyzed its chart and concluded that although Visa Inc managed to make new price highs, it was never able to reach new highs in its relative performance to the S&P 500. He also noticed that the stock has broken its trend line. Worth believes these signs are concerning, and he would take a short position in the name.
Mike Khouw suggested a bearish options strategy as a way to take a short position in the name. He wants to buy the March 75/65 put spread for $2.65. The break even for the trade is at $72.35 or 4.45 percent below the current stock price. He can maximally make a profit of $7.35 with the trade.
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