Visa - V - close: 60.67 change: +0.59 stop: 56.40

Why We Like It:
Short-term the trend in Visa is down. Shares have fallen from $70 to $60 in the last four weeks for a 14% correction. The stock is currently testing support near $60.00 and its 100-dma. Yet I don't want to buy calls yet. This is a volatile market. I suspect that V will break the $60.00 level only to find stronger support near $57.50. We're only trying to catch a bounce since the short-term trend is still down.

The plan is to buy calls at $58.00 with a tight stop at $56.40. Our exit target is $63.50.

Suggested Options:
Aggressive traders can use July options but they expire in less than two weeks. I'm suggesting the August calls. Remember, our trigger to buy calls is at $58.00.

BUY CALL AUG 60.00 VEH-HL open interest= 751 current ask $3.80
BUY CALL AUG 62.50 VEH-HO open interest=4905 current ask $2.60

Annotated Chart:

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       7.7 million  
Listed on  July 04, 2009