Stocks vs. Options: Which generates better returns?
Plug in your stock idea to find options trades offering a potentially better ROI.
NEW TO OPTIONS?
Visit our New to Options page to learn more.
Find out more »
February 9, 2010 8:00 EST Related Symbols: V
you're watching:
Mad About Options
An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.
Visa reported earnings on Feb. 3, sparking option trades for bulls and bears
The Pick – Visa Inc. (NYSE: V):
On Feb. 5, a Fast Money cast member said that Visa is a “buy”, because its numbers of impressive. V reported earnings after the market closed on Feb. 3. V shares are trading at $82.50 at the time of Fast Money’s call.
BULLISH Option Trading Idea for V:
Bull put spreads –
Maximum risk: $9.50 plus commissions
Maximum potential profit: $3 minus commissions
Breakeven: The strategy will be profitable if V shares are trading higher than $77 at June expiration.
BEARISH Option Trading Idea for V:
Bear synthetic–
Maximum risk: unlimited above $95
Maximum potential profit: $70 minus commissions
Breakeven: The strategy will be profitable if V shares are trading lower than $95 at January 2011 expiration.
For more trading ideas and breaking news on the options market, stay tuned in to The Options News Network.
