Good news after the bell came in the form of a rosy Visa (V, $49.13, up $0.74) earnings report. The company beat Wall Street’s estimates by a whopping 10 cents and reaffirmed 2009’s numbers. The company said it earned $574 million, or $0.74 a share, versus $424 million, or $0.55 a share, in the year-ago period. Wall Street had predicted Visa would make $0.66 a share.

The stock soared 8% in after-hours trading and is at $53 and holding. This is good news for the February 55 calls (VBK, $0.65, up $0.05) which could open around $1.75-$2.00 if the gains hold. If so, you will have to see how the stock reacts once the opening bell hits. If the shares continue to rally, place trailing stops on the call options as it moves higher. If the stock falters after a strong open, set stops to your desired return and get out.

I’ll be back in the morning with updates…

Rick Rouse
Rick@OptionsMentoring.com