Mastercard stock trades under the ticker MA & closed at $374.39/share on 7/21/2021.
MA stock has recently shown some technical weakness that both long-term investors & short-term traders can take advantage of.
After a ~5.5% gap-down on Monday, MA had a bearish MACD crossover, despite a slight recovery in price yesterday.
MA Stock Price: $374.39
10 Day Moving-Average: $378.39
50 Day Moving-Average: $368.84
200 Day Moving-Average: $352.00
RSI: 50
While Mastercard’s current stock price is in a questionable area, a long-term investor may think to start a position at this level, where they may be able to buy into on-coming weakness as the price level flirts with the 50 Day Moving-Average & is below the 10 Day MA.
Their dividend yield isn’t much of a cushion to protect against further downward motion, but with an RSI of 50 it isn’t unreasonable to think that they will be able to rebound in the nearterm.
Short-term traders may think to take advantage to this recent weakness using options.
The MA 7/30 $375 puts are currently at-the-money with a Delta of -.50, although with a Theta of -.41 it would be wise to be hedged with either some long-term shares & or some matching calls.
From the calls perspective, it may be better worthwhile to buy the slightly more in-the-money $372.50’s to allow for extra wiggle room as the price levels stabilize.
Overall, Mastercard’s stock & options look to provide traders & investors great opportunities & are worth considering a closer look at.
*** I DO NOT OWN SHARES OF MASTERCARD MA STOCK OR OPTIONS ***