The Visa Trade
Option Addict
It was asked that I shed some light on the Visa trade that I shared with everyone a couple weeks ago. Here is a quick recap, since there won't be much to do for the next few hours...
The initial trade was discussed back on April 18th under the "comments" section of my daily post.
Here is a copy of the chart that shows the trade over the last few weeks and how I have treated it...
1. The trade was taken in anticipation of a breakout back on 4/18. I bought May $75s for $1.80, and it was fairly early in the day. prices were moving beyond the IPO price of $69, and I wanted to be a part of the breakout.
2. I held up until earnings. I followed my rules to reduce my position and sold half.
3. After hours during the earnings call, V was down as much as 5%. It was at that time I had told you my next move...
4.The next morning I waited for the morning madness to cool down and backed up the truck. I tightened my stop which was initially back at $67 up to $71 and tripled my position. I bought June 75's and 80's, and even a few more May 75's.
The rest is history.
I usually get requests to review trades like this fairly frequently, so if you have questions fire away.
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