Streaking Visa Inc. (V) Attracts Short-Term Bulls

Visa Inc (V) hit an all-time high today

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Published on Feb 5, 2015 at 2:28 PM
Updated on Apr 20, 2015 at 5:09 PM

Visa Inc (NYSE:V) touched an all-time high of $270.92 today, with the stock last seen 2.2% higher at $270.75. Traders are scrambling to place bullish bets, with calls crossing at twice the normal intraday pace. Some V speculators could be wagering on a strong end-of-week finish for the stock, as buy-to-open activity appears to be occurring at the weekly 2/6 270-strike call. These traders are looking for additional gains above $270 for the equity through tomorrow night's expiration.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's calls have been hot for the past two weeks. V's 10-day call/put volume ratio across these exchanges is 1.66, higher than 77% of all readings from the past year. There's a chance some of this call buying is related to short sellers looking for a hedge, as over 14 million of the equity's shares are sold short, accounting for over a weeks' worth of trading, at typical daily volumes.

Analysts have a bullishly skewed outlook toward V, as nearly 80% of covering brokerage firms rate the stock a "buy" or better, versus five "holds" and not a single "sell." Moreover, the equity's average 12-month price target of $289.94 represents uncharted territory.

From a technical perspective, Visa Inc (NYSE:V) has been fantastic. Since hitting its mid-October low of $195.19, the security has added roughly 39%, after twice taking a sharp bounce off its 80-day moving average.

Daily Chart of V Since October 2014 With 80-Week Moving Average

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