My boy Craig in 'The Lou' just sent me a link that talked about options being opened on Visa (V) last week. I noticed this last Friday, but when Craig brought it up again, it piqued my interest enough to check out the options chain on my broker's page. It's looking like the ratio of Calls to Puts is heavily weighted on the call side ( 4:1 at least for expirations in June). This means traders are looking for Visa to do well in the next quarter. Today alone, the difference is a gain of 25% for two or three particular contracts. The increase in the base price of the stock is only 2% so far on the day. Now you see the appeal for options. 25% or 2%, which would you choose? I'm looking for a decent opening to take advantage. That means, I need Visa to take a little dip in the next few days. I jumped in on a dip like this with Merck last Monday when they got hammered by bad news and I'm about to close my position with a 75% gain (unless it goes up, since I've got a stop-limit trigger on it). Have fun on your next roller coaster ride, kids!
CZ
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