Visa (V) NewsBite - V Falls on Downgrade

Posted on Tuesday, June 24, 2008 10:04 AM

Visa (V) opened at $80.06. So far today the stock has hit a low of $78.60 and a high of $80.30. V is now trading at $78.60, down 2.46 (-3.03%). After debuting at $55.00 in March, the stock hit a one-year high of $89.84 in May. Shares of V are declining this morning after an analyst at Avondale downgraded the stock to "Market Perform" from "Market Outperform." Technical indicators for V are bearish and steady. If you’re looking for a hedged play on this stock, consider a July bear-call credit spread above the $95 range. V hasn’t been above $90 since at all since its IPO and has shown resistance around $85 recently. This trade could be risky if the company's earnings come out before July expiration, but even if that happens, this position could be protected by resistance V might have a hard time pushing throuhg between $84 and $90, where it has topped out three time in the past few months. [LHF- Seven Summits Strategic Investments NewsBite]