Visa (V) Options Signal $350 Bullish Bias Amid Regulatory Fears—Here’s How to Play the Rebound Setup

• Visa’s stock plunges 4.7% amid Trump’s 10% credit card rate cap proposal, but UBS raises price target to $425.
• Options market shows heavy call open interest at $350 and $360 strikes, hinting at a potential rebound.
• RSI near oversold levels and Bollinger Bands suggest a short-term bounce could be brewing.

Here’s the deal: Visa’s stock is getting hammered by regulatory fears, but the options market is quietly bullish. With calls dominating open interest and technicals pointing to a potential rebound, today’s drop might be a setup for a strategic entry. Let’s break it down.

The $350 Call Wall and Downside Put Protection

Options traders are stacking up calls at the $350 and $360 strikes for Friday’s expiration (V20260116C350, V20260116C360), with combined open interest of 12,613 contracts. That’s not just noise—it’s a bet that Visa will claw back above its 200-day moving average ($345.34) before the weekend. Meanwhile, puts at $300 and $320 (V20260116P300, V20260116P320) show defensive positioning, but the put/call ratio (0.91) tilts clearly toward bullish sentiment. No major block trades to worry about, so this looks like retail and institutional players aligning on a short-term rebound.

Regulatory Headwinds vs. Long-Term Optimism

President Trump’s 10% interest rate cap and the Credit Card Competition Act are spooking investors, dragging Visa down 8.5% over five days. But here’s the twist: UBS just reiterated a Buy rating with a $425 target, and Visa’s own economic outlook highlights AI-driven growth and stable global trade patterns. The market is overreacting to near-term risks while underestimating the company’s adaptability. Think of it like a storm cloud—dark now, but the sun’s still shining behind it if you’re positioned right.

How to Play the Rebound: Calls, Puts, and Precision Entries

For options traders, the V20260116C350 call is a key play. If Visa breaks above its 30-day support/resistance zone ($326.37–$327.00), this strike could catch a rally to $350+ by Friday. For downside protection, a put spread at V20260116P320 and V20260116P300 caps risk while hedging against a deeper selloff.

Stock buyers, consider entry near $327 if the price holds above its 30-day support level. A successful rebound could target the 200-day moving average at $345.34, with a stop-loss below $315 (the 30-day RSI oversold zone). For a longer play, the V20260123C350 call offers extra time if the rebound drags into next week.

Volatility on the Horizon

Visa’s story is a tug-of-war between regulatory risks and long-term growth. The options market is pricing in a near-term bounce, but keep an eye on Trump’s next moves—another tariff threat or legislative update could shift the script. For now, the data points to a setup where disciplined traders can buy the dip or sell calls against a controlled rally. The key? Stay nimble and let the technicals guide your exit when the storm passes.