Visa (V) Options Signal Bullish Contingency: How $350 Call OI and Block Trades Hint at a Potential Rally

• Visa’s price action shows a short-term bearish trend, but options data tells a different story.
• 2,475 open $350 calls (Friday expiry) suggest institutional bets on a breakout above key resistance.
• A $321k block trade in the V20251017C350 call hints at strategic positioning ahead of October expiration.

Here’s the core insight: Visa’s technicals are bearish, but options market sentiment leans cautiously bullish. The stock is trading at $321.75, just 0.18% above its previous close, yet the options chain reveals a striking imbalance—investors are buying more calls than puts, even as moving averages and RSI point to downside pressure. This tension between technical indicators and options positioning creates a unique setup worth dissecting.

The OTM Options Imbalance: A Battle Between Caution and Optimism

Let’s start with the numbers. For Friday-expiring options, the top OTM call has 2,475 open contracts at the $350 strike—a strike that’s 5.7% above the current price. That’s not just noise. When you compare it to the top OTM puts (2,527 at $320), the call/put open interest ratio is nearly 1:1. But here’s the twist: the next two call strikes ($370 and $340) still have 2,305 and 2,106 open contracts, respectively. That’s heavy demand for upside exposure across a wide price range.

Meanwhile, the puts are more concentrated. The top five OTM puts (expiring Friday) are all below $320, with the largest at $320 (just 0.5% below the current price). This suggests investors are hedging near the current level, not bracing for a deep selloff. The put/call ratio for total open interest (0.807) reinforces this—calls dominate, even in a technically bearish environment.

And then there’s the block trade: 750 contracts of the V20251017C350 call were traded in a single block, totaling $321,000. That’s not retail noise. Think of it like a captain buying lifeboats for the crew—someone is positioning for a rally by October 17. Why that strike? Because $350 is a psychological hurdle: it’s above the 30-day moving average ($338.82) and the 200-day line ($346.24). A breakout here could trigger a wave of stop-loss orders and momentum buying.

No Major News, But Options Are Telling a Story

The lack of recent headlines about Visa means this options activity isn’t reacting to fundamentals. But that’s not a problem—it’s an opportunity. When news is quiet, technical levels and options positioning become the market’s language. Right now, that language says: "We’re not convinced about the bear case, but we’re ready to bet on a rebound if the stock shows strength."

This matters because options traders are often ahead of the curve. The heavy call buying at $350 implies someone believes Visa could retest its 200-day average—or even break above it. And if the stock does that? The Bollinger Bands (lower at $324.58, middle at $338.82) suggest a 13.5% gap to the upper band ($353.06). That’s a lot of room for a rally.

Actionable Trade Ideas: Calls, Puts, and Precision Entries

Let’s get practical. If you’re bullish on a short-term rebound, the V20251017C350 call is your best bet. Why? Because the open interest and block trade confirm liquidity and institutional interest. A tighter entry could be the $340 call (V20251017C340) if Visa breaks above its 30-day moving average ($340.82). Both strikes expire Friday, so you’re betting on a near-term catalyst.

For downside protection, the $315 put (V20251017P315) is a solid hedge. It’s the most liquid OTM put and sits just below the 52-week low (assuming the current price is near that level). If Visa breaks below its intraday low of $319.87, this put could cap losses while the stock tests support at $315.

Stock traders, here’s your playbook: Consider entries near $324.58 (the lower Bollinger Band) if the price holds. A rebound from this level could trigger a test of the 30-day moving average. For a more aggressive play, target a long entry at $336.27 (the 30-day support/resistance zone) if Visa breaks above it. Your exit? Aim for $346.24 (the 200-day line) as a first target, then $353.06 (the upper Bollinger Band) as a stretch goal.

Volatility on the Horizon: What to Watch

The next 72 hours will be critical. If Visa closes above $338.82 (the middle Bollinger Band), the call-heavy options chain could turn into a self-fulfilling prophecy. Conversely, a close below $324.58 would validate the bearish technicals and send puts into overdrive. Either way, the block trade in the $350 call suggests someone is banking on a rally by October 17.

This isn’t a high-conviction bullish case—it’s a contingency plan for a scenario where the bears pause and the bulls regain control. The key is to stay nimble. Use the $315 put to hedge your downside while keeping an eye on the $350 call as a liquidity magnet. And if the stock stumbles? The RSI at 26.38 suggests oversold territory isn’t far off. Sometimes, the best opportunities come when the market overcorrects.

In the end, Visa’s options activity is a reminder: Markets aren’t just about what’s happening today—they’re about what people expect to happen tomorrow. And right now, the expectations are split. But for traders who can read the lines between the numbers, there’s a path forward.