Mastercard's most recent trend suggests a bullish bias. One trading opportunity on Mastercard is a Bull Put Spread using a strike $200.00 short put and a strike $190.00 long put offers a potential 6.38% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $200.00 by expiration. The full premium credit of $0.60 would be kept by the premium seller. The risk of $9.40 would be incurred if the stock dropped below the $190.00 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 78.41 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
The Most Troubling Number From Visa's First Quarter
Mon, 11 Feb 2019 22:01:00 +0000
The payment-processing giant turned in another solid quarter, but it showed a significant slowdown in cross-border transactions. Should shareholders be concerned?
Robert Olstein's Top 5 Buys in 4th Quarter
Mon, 11 Feb 2019 21:19:05 +0000
Top buys include one new position and increased bets in Buffett’s Mastercard and Goldman Sachs
3 Big Breakout Stocks to Buy
Mon, 11 Feb 2019 17:50:47 +0000
This earnings season has had no small number of winners. Indeed, the number of companies rallying after their reports is significant compared to other quarters in recent years. Over the weekend my search for the best stocks to buy revealed many breakout setups in companies that scored strong post-earnings rallies.The appeal of the breakout pattern is multi-fold. First, when a stock breaks a previously impenetrable ceiling, it signals buyers are strengthening their grip. Consider it a bullish omen that portends higher prices on the horizon. Second, interested spectators actively scan for stocks breaking to fresh highs. They often jump into breakout stocks, adding further fuel for continued upside.Third, stocks with clear resistance levels provide easy price zones to trade around. This allows traders to build low-risk, high-reward trades.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Next 10 Months With that, let's take a look at three breakout stocks to buy.Source: ThinkorSwim Starbucks (SBUX)Do you know what's better than a 52-week high? All-time highs! And that's what Starbucks (NASDAQ:SBUX) shares reached today. The coffee-chain giant has held up very well during the market's recent temper tantrum. Boosted by two solid earnings reports, SBUX stock has held firm over the past four months.The up-gap and follow-through after January's release lifted SBUX directly into overhead resistance at $69. And rather than forming a handle to its cup, the stock cut right through the ceiling on Friday. The rally is continuing this morning.To capitalize on the breakout, buy the April $70/$75 bull call spread for $1.90. The risk is limited to $1.90, and the reward is capped at $3.10.Source: ThinkorSwim Mastercard (MA)The turnaround in Mastercard (NYSE:MA) following last quarter's descent has been orderly, and downright impressive. January's robust earnings release and the subsequent jump in the stock price were merely the icings on the cake. With MA stock now north of rising 20-day, 50-day and 200-day moving averages, bulls have officially wrested back control of the trend across all time frames.The fact that sellers couldn't muster more than a two-day pullback before buyers rushed back in is telling. Friday's bullish engulfing candle suggests we want to see buyers of a break above the minor resistance pivot at $217. A run toward the peak at $225.35 seems only a matter of time. * 7 Reasons You Want Boeing Stock in Your Portfolio Buy the April $220/$240 bull call spread for $6. The risk is limited to $6 and will be forfeit if MA sits below $220 at expiration. The reward is limited to $14 and will be captured if the stock rises above $240. World Wrestling Entertainment (WWE)Source: ThinkorSwim Momentum traders fell in love with World Wrestling Entertainment (NYSE:WWE) last year. Tripling in value will do that to a stock. Though the fourth-quarter thrashing soured sentiment for a spell, this year's turnaround has buyers returning.WWE stock is rising above all its major moving averages, and last week's earnings release spurred a price breakout over $84. I particularly like how quickly the early morning weakness was bought up during Thursday's trading after the company's report.With resistance now felled, WWE is positioned for a run back to its all-time high of $97.69. Bull call spreads provide a cheap, limited-risk way to bank on further upside.Buy the April $85/$95 call spread for $4.05. The risk is limited to the original cost, and the reward is limited to $5.95.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post 3 Big Breakout Stocks to Buy appeared first on InvestorPlace.
Mastercard Stock Has Growth on Its Side, Analysts Say
Mon, 11 Feb 2019 16:11:00 +0000
After all, the two companies are often referred to, including by Barron’s, as forming a payments processing duopoly. Growth, Evercore ISI’s payments, processors, and IT services research team said in a Sunday note to clients.
How to Trade Square Stock Right Now
Mon, 11 Feb 2019 14:46:54 +0000
Square (NYSE:SQ) has outperformed the stock market and most other names since tech stocks' Christmas Eve lows. Square stock is up more than 40% from its lows and is now consolidating nicely near $70 per share.Square is far from perfect, though. The stock is much more volatile than the broader market and is susceptible to large moves in both directions. With the market teetering on a potential pullback ( it has risen some 15% from its December lows and is rapidly moving towards its 200-day moving average), Square stock could either be a pillar of strength or a weak link in the chain. Source: Chris Harrison via Flickr (Modified)If investors eliminate their emotions and rely on unbiased logic, they have a chance to profit from SQ stock. So let's look at the charts a bit before diving into a wider overview of Square stock.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Next 10 Months Trading Square StockSQ is holding up relatively well, particularly with the overall markets under some pressure after a big, multi-week rally. So far, SQ stock is staying above its 200-day moving average, which is near $69. This appears to be a rather key level when it comes to Square stock. The 200-day was resistance about a month ago, but once Square pushed through the 200-day, this level became support.Furthermore, short-term, uptrend support (depicted by the blue line on the chart above) comes into play around $69 as well and follows the 200-day moving average pretty closely. On a slightly deeper pullback, the risk/reward of Square stock would be solid for bulls.For bulls who are already long, a close below this area gives them a way to reduce their risk. If Square stock temporarily breaks below $69 and recovers in the same day, I would be much more likely to consider taking a long position in Square stock. That scenario would signify that the support of Square stock temporarily gave way, and that bulls responded by buying the shares with enough force to get them back over the key level of $69.So what happens if SQ falls below $69? If that happens, $65 is on the table. That's about the level where trend support (depicted by the black line) and the 50-day moving average come into play. If $69 holds, becoming support, look to see if Square stock moves over $72 to $72.50. That area is both short-term, downtrend resistance and the 100-day-moving average. If Square stock climbs above $72.50, it could retest its recent highs near $78.Know your levels and let the price action guide your actions. Don't fight what the stock price is doing. The Bottom Line on SQ StockSquare is not cheap and never really has been. However, investors counter the valuation argument with a few observations.Their first contention is that Square could be a takeover target for banks and/or payment processing companies. Perhaps the recent massive deal between SunTrust Banks (NYSE:STI) and BB&T (NYSE:BBT)will kick M&A in the financial sector into high gear.Presently, Square stock is valued at just under $30 billion. It's also got a surprisingly resilient balance sheet. SQ has total assets of almost $4 billion versus total liabilities of $2.8 billion, while the company has less than $1 billion of total debt.SQ is not on the list of stocks with the strongest balance sheets, but I was surprised that Square wasn't more leveraged. The fact that SQ has positive cash flow also makes Square stock more attractive.The bulls' other argument is the company's growth. Square will report its earnings at the end of February, and analysts expect the company to report strong, full-year growth. On average, analysts expect its sales to surge 60% to $1.58 billion and predict that its earnings will balloon 70% to 46 cents per share.As mentioned earlier, the valuation of SQ stock is high; the shares are trading at 156 times this year's consensus earnings estimate. But it's not easy to find companies that are growing as quickly as Square. In 2019, the average estimate calls for a further 43% expansion in sales to $2.25 billion and projects that its earnings will grow 52% to 70 cents per share.SQ stock is still expensive, as it's far more costly than its peers like PayPal (NASDAQ:PYPL), Visa (NYSE:V) and MasterCard (NYSE:MA). But growth investors won't mind its high valuation as long as its management continues to deliver.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long V. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post How to Trade Square Stock Right Now appeared first on InvestorPlace.
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