V & MA


Visa (V) is in a compression pattern (wedge), both in the price chart as well as RSI. When it breaks out of here, it would be a good entry for me.


On an intraday basis, some days are a bit boring, but there are some nice intraday plays. It has an ATR (Average True Range) of $2.87, which is nice for a stock within this range. That's about a 3.75% move intraday. MA (Mastercard) has about a 4.6% move intraday. Both are very nice.

V (@ $82.60):
Jul80C = $4.20 ($1.60 time value)
Jul85P = $5.00 ($2.60 time value)

MA (@ $271.72):
Jul270C = $11.90 ($10+ time value)
Jul280P = $15.20 (~$7 time value)

Wow!!!
We can see for MA, we can see a very classic head & shoulders (H&S) pattern. If it breaks below where it's at on the daily chart, it is a bearish move for MA. We're right at that pivotable point. We've had 2 days where the lows are nearly the same with a $1 difference. Close enough for a stock that is nearly $300.
To fill the gap, would be $242.50. That would be a $29+ move to the downside. In 6 trading days it moved $43 from its high. The last 9 days, it's moved down $32, with one outlier day. Not sure what happened there. MA's ATR is 12.61 for the last 20 days. It could go to fill the gap in 2-3 days.
MA has not filled every single one of its daily gaps since it began in 2006, however, it's filled most of them. It would be nice to see it fill this gap and perhaps make another run for $325 range. But, always remain neutral.
As a daytrader, this is less important for me, but I don't daytrade every account, only 1 at a time. Sometimes with some of MA's H&S patterns, it's not really followed through to the bearish side, so that may explain why the options are priced the way they are. And, if I chose the ATM for MA, it would be nearly what the 270C are, just a tad bit higher.
RSI for V is about near the 50 mark, which is pretty darned neutral. There seems to be a little more "fear factor" priced in the Puts. Remain neutral and set one's brackets. And play the breakout to whichever direction it takes.




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