DailyPlay – Opening Trade (V) – June 6, 2022

View V Trade

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish

Details: Buy to Open 4 Contracts July 15, 2022 $210/$190 Put @ $4.81 Debit.

Total Risk: This trade has a max risk of $1,924 (4 Contracts x $481 per contract).

Counter Trend Signal: This is a Bearish strategy on a stock that is experiencing a bullish trend.

1M/6M Trends: Bullish/Mildly Bullish

Technical Score: 9/10

OptionsPlay Score: 148

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade. 

Investment Rationale

Our bearish trade idea for today is Visa Inc. (V) which is displaying some downside risk when one considers the current consumer spending and consumer confidence slowdown. From a technical perspective, V has experienced a long term underperformance relative to the market, which we expect to resume after a brief rebound. Price is also forming lower higher on the weekly timeframe while holding the $190 support. We have seen a slight slowdown in momentum in recent days which could indicate the end of the current rebound and potential reversal lower.