One of the most awaited company, VISA, announced its first quarterly results. The speculation was hugely factored-in specially on the call side. The stock was down nearly $4 in “after market hours” trading yesterday and when it opened, it didn’t move much before falling $4 and bouncing back. This was one of those classic examples I mentioned earlier that after market reaction is not always true.
I shared one of the ways to play VISA earnings. Surprisingly, my most rewarding result came after the after the earnings generating 40% in less than 7mins.
- First results of what I shared earlier, it is now trading for $0.40/spread vs $0.15 risk when I shared yesterday. The potential (yielded +5%), though reduced now, is still intact for a good profitable trade. not bad for an income+speculative trade for one day.
- For OPN we opened a 67.5/70 Bull Put spread (for $0.60 credit/$1.90 margin) to benefit from IV crush and currently it is trading for +10% profits already and VISA needs to fall below $69.40 before this loses money. If it expires worthless by May expiration, the returns will be over +30% for less than 3 wks holding period.
Now comes the icing on the cake. After markets opened, there was a knee-jerk reaction in the VISA stock, in the initial 30mins, to washout weaker ones. I picked up VISA May 75 calls at $1.50, and in less than 10mins I was able to sell it for $2.10, collecting +40% gains. 
The hunt is now on for other opportunities. Profitable trading, OP
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For OPN, I closed the VISA Bull Put spread for +21% gains for one day holding.