6 Cheap Options Trades on Expensive Stocks
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Master Card (MA)
By Chris Johnson and Jon Lewis
The consumer has remained selectively active during the recession. Shoppers have found the wherewithal to continue spending, though now more within their means instead of in excess.
Besides the retail chains, a primary beneficiary of consumer dollars are credit card companies such as Master Card (MA). Like Visa (V) and others, MA benefits from the transaction fees racked up by those magnetic stripes swiping at the register.
We think MA has some catching up to do, and that the MA Jan 220 Calls (MALAD) provide a great leveraged option for the expected stock move given that the option costs about 7% of the current share price.
