Investors with a lot of money to spend have taken a bearish stance on Visa V.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with V, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 8 uncommon options trades for Visa.
This isn't normal.
The overall sentiment of these big-money traders is split between 12% bullish and 62%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $961,110, and 6 are calls, for a total amount of $230,500.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $240.0 to $280.0 for Visa during the past quarter.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Visa options trades today is 3186.4 with a total volume of 5,082.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Visa's big money trades within a strike price range of $240.0 to $280.0 over the last 30 days.
Visa Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| V | PUT | TRADE | NEUTRAL | 08/16/24 | $3.75 | $3.65 | $3.7 | $265.00 | $931.2K | 4.2K | 2.5K |
| V | CALL | TRADE | BEARISH | 10/18/24 | $4.3 | $4.2 | $4.2 | $280.00 | $50.8K | 5.6K | 254 |
| V | CALL | TRADE | BULLISH | 10/18/24 | $4.1 | $4.05 | $4.1 | $280.00 | $48.7K | 5.6K | 407 |
| V | CALL | TRADE | BEARISH | 10/18/24 | $4.15 | $4.1 | $4.1 | $280.00 | $38.1K | 5.6K | 560 |
| V | CALL | TRADE | NEUTRAL | 10/18/24 | $4.1 | $4.0 | $4.05 | $280.00 | $34.8K | 5.6K | 646 |
About Visa
Visa is the largest payment processor in the world. In fiscal 2023, it processed almost $15 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.
Following our analysis of the options activities associated with Visa, we pivot to a closer look at the company's own performance.
Visa's Current Market Status
- Trading volume stands at 3,061,593, with V's price up by 1.1%, positioned at $266.0.
- RSI indicators show the stock to be is currently neutral between overbought and oversold.
- Earnings announcement expected in 83 days.
What The Experts Say On Visa
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $307.4.
- An analyst from Morgan Stanley has decided to maintain their Overweight rating on Visa, which currently sits at a price target of $322.
- Maintaining their stance, an analyst from Macquarie continues to hold a Outperform rating for Visa, targeting a price of $300.
- Reflecting concerns, an analyst from B of A Securities lowers its rating to Neutral with a new price target of $297.
- Consistent in their evaluation, an analyst from Jefferies keeps a Buy rating on Visa with a target price of $300.
- An analyst from TD Cowen has decided to maintain their Buy rating on Visa, which currently sits at a price target of $318.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Visa options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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