Mastercard (MA) Offering Possible 49.25% Return Over the Next 21 Calendar Days

Mastercard's most recent trend suggests a bullish bias. One trading opportunity on Mastercard is a Bull Put Spread using a strike $277.50 short put and a strike $272.50 long put offers a potential 49.25% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $277.50 by expiration. The full premium credit of $1.65 would be kept by the premium seller. The risk of $3.35 would be incurred if the stock dropped below the $272.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Mastercard is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Mastercard is bullish.

The RSI indicator is at 66.48 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Mastercard

Square Stock is Overvalued But Could Go Higher
Wed, 24 Jul 2019 17:05:46 +0000
Square (NYSE:SQ) stock has seen a nice boost in the past two months. Trading around $60 in early June, shares in the payment processing disruptor have soared to nearly $80 a share.Source: Shutterstock With expansion into other services, and analysts increasingly bullish on Square stock, is it time to buy?Compared to peers, SQ appears overvalued. With high expectations of growth, Square needs to deliver in order to justify its current valuation. Does Square have upside in the short term?InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell This Summer Earnings Season Read on to see whether SQ stock is a buy today. Analysts Increasingly Bullish on SQ StockThe analyst community has become increasingly bullish on Square stock. Earlier this month, Raymond James's John Davis upgraded the stock from "Underperform" to "Market Perform." Davis initially was bearish on the company's valuation relative to growth expectations. He believes the company could see a boost in shares if second quarter earnings beat their guidance.Argus analyst Stephen Biggar is also bullish on Square's prospects. Initiating coverage earlier this month, Biggar gave the company a "Buy" rating, with a price target of $94 a share. Believing the company is positioned to capitalize on the migrations of payments to mobile applications, he is highly confident the company will meet sales growth expectations.But with sales slowing down, are the analysts on point? Let's take a look at Square's first quarter earnings release, and whether results will meet guidance for the second quarter. Square's Past and Future EarningsThe company had a strong first quarter, with revenue up 43% year-over-year (YoY). However, YoY revenue growth is slowing down. In the fourth quarter of 2018, YoY sales growth was 51%. With this slight slowdown, investors may be concerned that the SQ growth story is fading out.But the company has multiple avenues to expand their presence in the business services space. Thanks to the acquisition of Weebly, Square has launched Square Online Store. This platform gives Square the opportunity to seize market share from e-commerce dynamo Shopify (NYSE:SHOP).The launch of Square Invoices is another area of growth potential. By providing payments processing, online store software, and an invoicing application, Square is now a one-stop shop for the back-end needs of small businesses.SQ's Cash App also has potential to disrupt much of PayPal's (NASDAQ:PYPL) Venmo peer-to-peer payments business. PayPal is ahead in terms of monetizing Venmo. Venmo and competitor Zelle also have stronger projected usage going into 2022. To keep Cash App from turning into an "also-ran," Square has its work cut out for them.Square announces second quarter earnings in early August. Based on guidance provided in the first quarter press release, SQ estimates YoY sales growth of 43% for the second quarter. For the full year, the company also projects revenue growth of 43% in 2019 from 2018. This is an improvement over prior guidance, which projected 41% revenue growth for the year.It is clear that Square's growth is slowing down, but the business continues to compound at a rapid clip. With high growth expectations, is the company's current valuation (high premium to peers) justified? Square Stock Pricey Compared to PeersCompared to its peers, Square stock is expensive. SQ trades at a Enterprise Value to EBITDA ratio (EV/EBITDA) of 1,270. Here are the EV/EBITDA ratios for Square's competitors:PayPal: EV/EBITDA of 48Mastercard (NYSE:MA): EV/EBITDA of 31Visa (NYSE:V): EV/EBITDA of 27.8Using the EV/EBITDA metric may not be relevant in determining the company's current valuation. Square is still in growth mode, and is years away from posting high operating margins. With substantial sales growth over the coming years, once the company becomes a cash generator, SQ stock's valuation should begin to trade in line with PayPal. The question is whether this current potential upside is already reflected in the current market value of Square stock ($33.6 billion market capitalization). Bottom Line: SQ Overvalued, But Could Go HigherSquare stock's valuation is due to high investor expectations. The company's payments processing business, sometimes referred to as "payments as a service" (PaaS) is a game changer in processing payments for small businesses. With their expansion into back-end business services (online store and invoicing software) and peer-to-peer payments, the company is becoming a stronger competitor to PayPal and Shopify.At the current trading price (around $80 a share), SQ stock could tread water from now until the next earnings call. Failure to meet high expectations could impact the stock, causing a dip (as seen after the first quarter earnings release).Investors looking for an opportunity may find a better entry point a few weeks down the road. Long-term, Square's successful disruption of the payments space could make the stock a strong performer.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post Square Stock is Overvalued But Could Go Higher appeared first on InvestorPlace.

MasterCard (MA) Earnings Expected to Grow: Should You Buy?
Tue, 23 Jul 2019 14:32:02 +0000
MasterCard (MA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

How Mastercard Makes Money: Financial Institution Customers Pay Volume Fees
Tue, 23 Jul 2019 02:51:37 +0000
Although most consumers think of Mastercard as a credit card company, in actuality it is a participant in the payments industry, acting as a middleman in transactions.

Facebook (FB) Q2 2019 Earnings Preview: Revenue, User Growth & More
Mon, 22 Jul 2019 22:46:10 +0000
Let's check out what to expect from Facebook's (FB) Q2 earnings results and more, including user growth.

MasterCard (MA) Outpaces Stock Market Gains: What You Should Know
Mon, 22 Jul 2019 21:45:09 +0000
MasterCard (MA) closed the most recent trading day at $278.59, moving +1.08% from the previous trading session.

Be Sociable, Share!

Related Posts


MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The educational training program and software services are provided to improve financial understanding.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.