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Today, we’re opening a new bullish trade on MasterCard (NYSE:MA). MA is breaking higher and is moving up toward its Oct. 31 high of $108.93. We expect the stock to continue climbing up to, and beyond, this level in the run up to the company’s quarterly earnings announcement on Jan. 31, before market open.

MA is in a great position to take advantage of the increased inflation the Fed sees coming in the year ahead. Here’s why — Credit card companies, like MA, charge retailers a percentage of the purchase price for every transaction.

That means when prices go up, the amount MA collects goes up. This should increase revenues for the company during the coming year.

MA has also recently launched a new $4 billion share-buyback program and increased its dividend by 15.8%. These actions should improve the stock’s earning per share (EPS) and draw in more potential investors.

‘Buy to open’ the MA February 110 Calls (MA170217C00110000) for a maximum price of $2.20.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.