Traders are looking for Visa to rally after it reports earnings next week.
optionMONSTER's monitoring program shows that more than 5,500 May 80 calls were purchased for $1.49 to $1.58 yesterday. Volume surpassed open interest of 4,328 contracts, an indication new money was put to work.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
V fell 0.27 percent to $77.82 yesterday but is up 10 percent in the last month. The credit-card company reported bullish results on Jan. 28 and is scheduled to announce its next quarterly numbers after the close on April 21.
Overall option volume was about average in V yesterday
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