This stock could revisit all-time highs — here's how I'm trading it: Trader

Visa shares are hovering near all-time highs, and one trader who relies heavily on the charts says they could climb even more.

Todd Gordon of TradingAnalysis.com has kept an eye on Visa and other financial services companies, and he thinks that Visa can "close the gap" on a dip that happened in late April. The stock has sat at around the same level for most of May, though it began making moves upward near the end.

"Both Visa and MasterCard have performed extremely well, and I think Visa has the opportunity to move up and close a gap that was formed at about the $81 region," he said Thursday on CNBC's "Trading Nation."


To make a play for new highs, Gordon turned to the options market. Specifically, he bought the 80/82 June call spread for 58 cents. That's the most he can lose on the trade. But if Visa can rise to $83, Gordon's trade will triple in value.

"The max profit comes in at our short strike, which is 82, which will give us a max profit of $142," he said. "So you're putting down $58 to make $142."

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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