After the market sold off last week on geopolitical fears, the bulls responded in force today. Of note, an unusual order in Visa V – NYSE crossed the tape when a trader bought 5,000 V April 91.5 calls for $0.78 apiece.
While this trade cost $392,000, the extremely short time window makes it far more interesting. April expiration is this Friday, so these options only have just four days to pay off.
Given a break-even price of $92.28, V needs to increase 2.8% for it to happen. Above this level, our customer is setup to make $500,000 for every buck shares rise.
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