economy
February 2, 2026
The risk-reward on this payments stock looks attractive. How to trade it using a risk reversal options trade
Options trader Michael Khouw breaks down this call spread risk reversal on this payments name.
TL;DR
- Corpay operates as a global corporate payments provider with solutions in vehicle, lodging, and corporate payments.
- The company aims to shift its revenue mix towards higher-growth Corporate Payments while maintaining its Vehicle Payments base.
- Organic revenue growth accelerated to 11% in Q3 2025, primarily led by the Vehicle Payments segment in the U.S.
- Corpay is an active acquirer, having completed the Alpha Group acquisition and acquired a stake in AvidXchange, while also divesting some units.
- Net debt stood at approximately $6 billion as of September 30, with free cash flow expected to recover to just under $1.7 billion in the current year.
- The company's options market exhibits wide bid/ask spreads, suggesting the need for careful order placement for trades.
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