Europe Delivers ... Sort of
Europe has spoken (kind of) and the bulls have listened (sort of). The statement out of Europe provides for interesting evening reading and plenty of reactions tomorrow. On the surface, it feels a little cryptic. Europe was able to buy itself more time while avoiding the wrath of the market, this much is certain. The statement is vague enough to give both bulls and bears firepower into tomorrow, so I don't feel a huge rally is imminent. The bulls do have an advantage after today's action based on the technical picture, but the situation is still too fluid to draw a conclusion just yet.
Visa (V) is one of the bigger names after the bell that I am looking at playing. Again, I am sticking with range-bound price plays with weekly options. The winners have been solid and the losers have left very small losses. We've seen enough craziness this week, but I have V targeted at $88 or $95 after earnings. My one worry is a draw to $90 for a pin on Friday, so anything other than short options, which I am not playing, may have to be adjusted quickly. Again, I stay with my unbalanced butterflies in both directions. I will stay with them until they stop working. In this case, I'll go long two Oct. 28 $92.50 calls, short three Oct. 28 $95 calls and long one Oct. 28 $97.50 call. I'll do the same ratio for puts using the weekly $90, $87.50 and $85 strikes, respectively. The total cost is around $2.30. The breakeven areas are $93.65 and $88.85. Anything above or below these levels will be profitable at Friday's expiration. The max value is $5 at either middle strike and $2.50 on any move beyond the outside-most strikes....390 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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