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

Quantcha now offering unlimited commission-free options trading.

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 $197.48 and has an implied volatility of 13.30% 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 $197.57-$201.82 at expiration. In this scenario, the average linear return for the trade would be 47.93%.

52 week high: VISA recently reached a new 52-week high at $198.07. V had traded in the range $133.30-$196.95 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 $197.48 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 $196.69 on 24-Jan-2020. Based on our risk-neutral analysis, there is a 58.25% 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.