Trade of the Day: MasterCard (MA)

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We’re opening a new bullish trade on  Mastercard Inc (NYSE:MA). With Black Friday and the holiday shopping season upon us, we are making a trade based on something almost every consumer is going to be swiping again and again during the next few weeks: debit/credit cards.

We anticipate holiday spending is going to be up this year (as it seems to be almost every year), and regardless of whether consumers are spending in brick-and-mortar stores or online, they will be predominantly using their debit/credit cards. This is a good thing for MasterCard. The more consumers spend, the more MasterCard makes because MA takes a percentage of every purchase.

After consolidating for a few weeks, MasterCard has finally started to break out again. Based on the height of MasterCard’s consolidation range, we anticipate the stock should easily be able to rise to $89. However, it could go much higher if it makes a move commensurate with the move it made in late October.

‘Buy to open’ the MA January 87 Calls (MA150117C00087000) for a maximum price of $1.95.

John Jagerson and Wade Hansen are the editors of SlingShot Trader, helping investors capture options profits trading the news by using a proprietary 100% news-driven trading platform that turns event-driven pricing inefficiencies into fast profits. Get in on the next trade and get 1 free month today.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/11/trade-day-mastercard-ma/.

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