Visa Onn.tv Trade idea

Below you will find two charts. First you will see the 3 month chart of V. As you can see it recently tested a long term resistance level around $90 and has since pulled back. Also notice how V has seemed to find support around $86. Next is a 2 year chart that shows a nice bull flag forming which really could help ignite this stock to the century mark. After you take a look at the charts, look at the trade idea generated out of Onn.tv. I may take a look at this spread for a possible position. But I need to do some more analysis.

Let me know what you think...





Visa Inc. (V) Bull Call Spread
by the ONN Idea Generating Platform
Posted on Mon, 28 Dec 2009 14:30 EST

Related Symbols:VOne way to play the continued strength in technology shares is with a leader in electronic transaction services. Visa Inc. (V) has recently pulled back from 52-week highs reached only 10 days ago on extraordinarily high volume. As the tech sector moves higher during the first quarter of 2010, the odds are favorable that the stock will challenge the $90-level again, the site of its all-time highs in May 2008. This March bull call spread offers a good risk/reward opportunity if a momentum move to the century mark develops.

V is currently trading at $86.46 per share.

Debit Spread/Bull Call Spread -

•Buy the March 95 call for $1.55 per contract.
•Sell the March 100 call for 70 cents per contract.
•Net debit of 85 cents (or $85 per spread)
Profit/Loss Details:


Maximum risk: 85 cents (the debit paid at the time of the trade), plus commissions.

Maximum potential profit: $4.15 (the difference between strike prices -$5 – minus the debit of 85 cents). Return on risk is approximately 488%.

Breakeven: $95.85 (the strike price of the purchased call plus the debit paid).