Visa, the largest payment processor in the world, has caught the attention of investors with a significant amount of money to spend. These investors have taken a bearish stance on Visa, and retail traders should take notice.
The trades made by these investors were spotted on publicly available options history that is tracked by Benzinga. While it is unclear whether these investors are institutions or wealthy individuals, such significant moves in the market often indicate that someone knows something is about to happen.
Benzinga’s options scanner recently identified eight uncommon options trades for Visa. This is not a normal occurrence, and it suggests that these big-money traders have mixed sentiments. Approximately 37% of the trades were bullish, while 62% were bearish.
Out of all the special options trades uncovered, two were puts with a total value of $89,901, and six were calls with a total value of $280,598.
To gain further insights into the potential price targets for Visa, Benzinga analyzed the trading volumes and open interest. It was found that the major market movers are focusing on a price band between $145.0 and $267.5 for Visa, spanning the last three months.
Analyzing the volume and open interest is crucial in understanding liquidity and interest levels for Visa’s options at specific strike prices. Over the past month, the trends in volume and open interest for calls and puts within the $145.0 to $267.5 strike price range were examined.
The largest options trades observed for Visa include a bullish call sweep trade with an expiration date of 01/19/24 and a strike price of $205.00, totaling $93.0K. On the other hand, a bearish call sweep trade with an expiration date of 01/17/25 and a strike price of $265.00 amounted to $62.8K. Additionally, a bearish put sweep trade with an expiration date of 02/16/24 and a strike price of $265.00 totaled $58.8K.
Visa operates in over 200 countries, processing transactions in more than 160 currencies. Its systems can handle over 65,000 transactions per second, and in fiscal 2022, it processed over $14 trillion in total volume.
Looking at Visa’s current position, the trading volume stands at 1,214,260, with the stock price at $264.12, experiencing a decline of -0.42%. RSI indicators suggest that the stock may be overbought, and an earnings announcement is expected in eight days.
Options trading carries more risk compared to trading the stock directly, but it also offers higher profit potential. Serious options traders manage this risk by staying informed, scaling in and out of trades, following multiple indicators, and closely monitoring the markets.
For those who want to stay updated on the latest options trades for Visa, Benzinga Pro provides real-time options trade alerts.
In conclusion, the bearish stance taken by investors with a significant amount of money on Visa suggests that there may be something brewing in the market. Retail traders should pay attention to these moves and stay informed about the latest options trades for Visa through platforms like Benzinga Pro.
