Add Visa Calls
Another Earnings Play
PLAY: Buy the Visa November 75 Calls (V KO) at or under $3.30, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.00.
Dear Bottarelli Research Member,
Good morning. Thanks again to everyone who wrote me about the Amazon play. From a personal side, it’s always very rewarding for me to hear about your success stories. So I tell you what…I’ll keep issuing gangbuster trades, and you keep writing gangbuster success stories. Sounds like a mutually beneficial relationship, wouldn’t you say?
In that spirit, I’d like to get positioned in another earnings-based play on Visa (V – NYSE). Here’s the situation…
Tomorrow after the bell, Visa is set to report their latest earnings report. And as you can see from the chart, it looks like the stock is getting ready to make another upside push. Now as you know, a few things might happen. First, Visa could rally going into this earnings report, in which we’d typically take half of our profits off the table and then hold the remainder going into earnings. Then, if Visa reports strong numbers, we’ll lock in the remainder of our gains on the blastoff. This would be the best scenario.
If Visa reports weak numbers (or the stock decides to sell-off), the chart looks strong enough to use the pullback to our advantage. Therefore, adding November calls on Visa today, with the expectation of adding to them on any earnings-related dip, offers us a nice safety net. All things considered, let’s jump into this play now.
PLAY: Buy the Visa November 75 Calls (V KO) at or under $3.30, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.00.
At the same time, maintain your GMCR November 80 Calls (QGM KP) and your protective SDS November 38 Calls (SSH KL). And as always…
Lock and load!
Sincerely,
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