Visa Inc (V)

[sonetirot]

10 contracts = 1000 shares X .80 = $800 + Fees
You better hope that V is higher than $100.80

Assume it is $101 on last day of trading. Your value of option is ($101-$100) = $1.00 you win only 20 cents ($200) (Assume no time value)

If it is $105, the value is $5 (Assume no time value)
You could sell to close for $5 ($5000), You profit is $5000-800 = $4200 (less commission both way)

I prefer sell protect Bull Spread Credit PUT
If you really know it would go UP to certain point
I would sell V June 90 PUT and Buy June 80 PUT as protection.
I would get CASH upfront about $630 per contract.
Risk only $370 since my maximum loss would be $1,000 if V close below $80. My break even point if V close at $83.70
Anything above $83.70 I win
Above $90 I kept $630
For 10 contracts it would be $6,300 profit if above $90