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Gimme Some Credit

By Market Shadows
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Gimme Some Credit

By Paul Price of Market Shadows (originally published on 4/28)

We Sold a Long-Term Put on Visa 

In our Market Shadows' Virtual Put Writing Portfolio took advantage of last week’s sell-off in the high-quality shares of Visa (V). We wrote (sold) one contract of the Jan. 2016, $200 strike price put for $24.42.  

Visa Put for MS

Thus, we are now ready to buy 100 shares of Visa for a net price of $175.58 ($200 strike price – $24.42 put premium) if the put is exercised. Our maximum gain will be realized if Visa simply holds above $200 through expiration date. If V stays above $200, we will keep the entire $2,442 premium and will not be forced to buy any Visa shares. That is our best case scenario.

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Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither PSW Investments, LLC d/b/a PhilStockWorld (PSW) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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