ELECT 24 Top Ad

3 Reasons To Buy Visa Stock

Visa stock has been among the best to own in February

Managing Editor
Jan 31, 2018 at 3:17 PM
facebook X logo linkedin


Visa Inc (NYSE:V) has stormed into the new year, on track for its seventh straight monthly win. The blue chip financial firm is scheduled to report fourth-quarter earnings after tomorrow's close, and the stock could be on the cusp of a historically bullish month. Below, we will take a closer look at how Visa has been faring on the charts, and how options traders are speculating on the Dow stock.

At last check, Visa stock was up 0.2% to trade at $123.82, and touched a record high of $126.88 on Monday. Visa stock has added 8.6% so far in 2018, and roughly 50% year-over-year -- guided higher by its rising 10-week moving average. Furthermore, the security has been one of the best stocks to own in the month of February over the past 10 years.

The blue-chip name has an encouraging earnings history. V has been higher the day after earnings in five of the last eight quarters --  including a 4.6% gain last February. The shares have averaged a single-session post-earnings swing of 2.4% in either direction, looking back two years. This time around, the options market is pricing in a larger 5.1% move, per at-the-money implied volatility data.

It should also be noted that Visa has a history of rallying after the Super Bowl. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, the equity has averaged a gain of 5.32% the month after the Super Bowl, looking back 10 years.

Super Bowl Stocks 1 Month

In the options pits, this bullish sentiment is prevalent. Visa stock has seen call buying more than double put buying over the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

Digging deeper, the March 125 call is home to peak front-month open interest during this time frame. The majority of the activity at this strike is of the buy-to-open variety, indicating options traders are banking on another strong February from Visa stock in 2018.

 

Biden’s government just announced a new government "stimulus program"...

And it could hand you a payment for as much as $7,882 — each quarter.

See, it has to do with a recent 19-page memo from Biden’s office...

Directing the government to once again send a form of "stimulus payments" to the mailboxes of Americans during these difficult times.

Better still, you can collect these payouts every single quarter — for life...

Payments run as high as $7,882... And it only takes five minutes to sign up.

I call this the "Stimulus Stipends" program…

And Forbes recently declared that you can "retire rich" thanks to this program.

So if you want to start cashing in your quarterly payouts — courtesy of the U.S government...

Discover how to receive your FIRST "Stimulus Stipends" payment for up to $7,882 here. 
 (ad)
 

election 2024 report

                                                  AD                                                  
best AI trade you can make today…?
(it’s not MSFT, GOOGL, AMZN or AAPL)

                                                  AD                                                  

 
 

VOLATILITY SCORECARD

 


                                               AD                                                    
Crazy Opportunity!! Tiny AI Stock just $3
“This Type of AI Will Be Worth “Ten MSFTs.”

                                               AD                                                    

 
4 AI STOCKS TO BUY NOW
 

                                                  AD                                                  
best AI trade you can make today…?
(it’s not MSFT, GOOGL, AMZN or AAPL)

                                                  AD