On Friday’s CNBC’s Options Action, the crew analyzed Visa’s recent performance compared to the overall market. As Visa made new absolute highs over the last few months, it has failed to make advances compared to the S&P500. V has recently broken a 3 year bullish trendline which suggests the beginning of a bearish move lower. Additionally, the crew expects profit margins to contract from its 2016 acquisitions. Expecting a possible move lower, Michael Khouw suggested buying a March 75/65 Put Spread for $2.65 Debit.
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