52-Week High Alert: Trading today’s movement in VISA $V

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Quantchabot has detected a promising Bull Put Spread trade opportunity for VISA (V) for the 24-Jan-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

V was recently trading at $192.96 and has an implied volatility of 15.20% for this period. Based on an analysis of the options available for V expiring on 24-Jan-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $193.10-$199.04 at expiration. In this scenario, the average linear return for the trade would be 52.09%.

52 week high: VISA recently reached a new 52-week high at $193.92. V had traded in the range $133.30-$191.14 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if V maintains its current direction and does not revert back to pricing on the bearish side of $192.96 on 24-Jan-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if VISA closes at or above $193.05 on 24-Jan-2020. Based on our risk-neutral analysis, there is a 50.33% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.