Visa - Stock Analysis Update

I have initiated a few Visa related transactions subsequent to my July 11th Visa stock analysis and through this Visa stock analysis update I disclose the following:

  • purchased 100 additional V shares on July 12th in a taxable account;
  • closed my $250 July 16, 2021, covered calls on July 14th; and
  • purchased additional shares to increase our V exposure in a tax-efficient retirement account.

The recent sudden surge in V's share price left me vulnerable to a breach in the $250 strike price. I, therefore, closed my position at a cost of $0.27/share since I have no intention of parting with my V shares. This is not such a bad trade-off relative to the ~$0.901/share received on May 26th.

It is my intent to 'meltdown' the retirement account which holds the bulk of our V shares. I have another ~13 years, however, before we need to convert this Registered Retirement Savings Plan to a Registered Retirement Income Fund; my plan is to gradually liquidate holdings other than V.

While I continue to view V's valuation as being somewhat rich, V is a high-quality company with an attractive long-term outlook. I am, therefore, prepared to 'pay up' to gradually increase our exposure in our largest holding; this is disclosed in my April 2021 FFJ Portfolio Holdings Review.

Stay safe. Stay focused.

I wish you much success on your journey to financial freedom!

Note: Please send any feedback, corrections, or questions to [email protected].

Disclosure: I am long V.

Disclaimer: I do not know your individual circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your own research and due diligence. Consult your financial advisor about your specific situation.

I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.