Capital One (COF) stock plummeted on Jan. 12 as President Trump proposed capping credit card interest rates at 10%. Despite a 60% increase versus its 52-week low, investors worry this move could threaten Capital One’s profitability. The average U.S. credit card APR is currently around 21%, making a 10% cap a significant change.

Options data suggests that the decline in COF shares may be temporary, with contracts expiring mid-June showing potential for the stock to reach $267. Even in the near term, a 5.81% implied move indicates COF could trade above $246 by Jan. 23. Technical indicators also point to a recovery, with the stock remaining above key moving averages.

Despite Trump’s proposal, Wall Street analysts maintain a “Strong Buy” rating on COF shares, with a mean target of $277 suggesting nearly 20% upside potential. The market’s initial reaction to Trump’s announcement has not deterred analysts from being bullish on Capital One’s future performance.

Read more at Barchart: Should You Buy the Dip in Capital One Stock? What Barchart Options Data Says.