GILD Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Gilead Sciences (GILD) presents a constructive setup as the stock consolidates near recent highs with support levels intact. The company benefits from a diverse drug portfolio and consistent cash flows, while investors continue to reward its stable earnings profile and dividend yield. Although the stock trades at a modest premium to peers, Gilead’s stronger growth expectations and profitability metrics continue to support the case for upside. With technicals aligning constructively and fundamentals providing a solid foundation, GILD may be positioned to advance toward the $125 price target in the near term.

Technical Analysis
GILD recently broke above the $114 resistance level and has since pulled back to retest it as support, a constructive sign for the ongoing uptrend. The stock is trading above its 50-day moving average and remains comfortably above the 200-day, reinforcing a bullish longer-term structure. With RSI near 60, momentum is healthy without being extended, leaving room for further gains. The bullish thesis remains intact as long as $110 support holds.

Fundamental Analysis
From a fundamental standpoint, Gilead maintains a balanced profile of steady earnings, dividend support, and attractive growth relative to its sector. While its valuation is slightly above the industry median, growth and profitability metrics more than justify the premium. Key data points highlight the strength of its outlook:

• Forward PE Ratio: 14.07x vs. Industry Median 12.29x
• Expected EPS Growth: 24.15% vs. Industry Median 6.46%
• Expected Revenue Growth: 3.25% vs. Industry Median 3.61%
• Net Margins: 21.87% vs. Industry Median 16.08%

Options Trade
To express a bullish view with defined risk, consider selling the GILD October 10, 2025, $110/$105 put vertical for a $1.50 credit. This trade collects $150 in premium with a maximum risk of $350, resulting in a risk/reward ratio of roughly 2.3:1. The position profits if GILD stays above $110 through expiration, which aligns with the current technical support zone. If the stock finishes above $110 at expiration, the spread expires worthless and the strategy captures the full credit received. This structure provides an efficient way to capture upside while maintaining a favorable margin of safety.

GILD – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 5 GILD Oct 10 $110/$105 Put Vertical Spreads @ $1.50 Credit per Contract.

Total Risk: This trade has a max risk of $1,750 (5 Contracts x $350) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $350 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bearish/Neutral

Relative Strength: 3/10

OptionsPlay Score: 97

Stop Loss: @ $3.00 (100% loss to value of premium)

View GILD Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View GILD Trade

Closing Trade

• PM – 70% gain: Buy to Close 2 Contracts (or 100% of your Contracts) Sep 26 $175/$185 Call Vertical Spreads @ $0.95 Debit. DailyPlay Portfolio:  By Closing 2 Contracts, we will be paying $190. We initially opened these 2 contracts on August 21 @ $3.17 Credit. Our gain, therefore, is $444.
• LOW – 63% gain: Buy to Close 4 Contracts (or 100% of your Contracts) Sep 19 $247.50/$240 Put Vertical Spreads @ $0.93 Debit. DailyPlay Portfolio:  By Closing 4 Contracts, we will be paying $372. We initially opened these 4 contracts on August 19 @ $2.51 Credit. Our gain, therefore, is $632.

NVDA Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
NVIDIA Corporation (NVDA) reports earnings after the close today, and the setup into the print appears favorable. As the clear leader in accelerated computing and AI-driven infrastructure, NVDA remains uniquely positioned to capture growth across generative AI, hyperscale data centers, and advanced GPU deployments. Investor sentiment across semiconductors has firmed, and with NVDA’s recent consolidation resetting expectations, earnings could serve as the spark for renewed momentum. The stock’s positioning ahead of this catalyst supports a bullish stance.

Technical Analysis
NVDA has steadily reclaimed upside momentum, with shares now trading above the 20-day, 50-day, and 200-day moving averages. The recent pullback in August found support at the rising 50-day near $168 before the stock bounced back toward the $180–182 zone. This level represents short-term resistance but a breakout could quickly set up a retest of prior highs. The RSI at ~70 suggests strong momentum without yet flashing an extreme overbought signal, leaving room for continuation if earnings surprise to the upside.

Fundamental Analysis
NVIDIA continues to deliver industry-leading growth and profitability, supported by secular demand tailwinds in AI and cloud computing:

• Forward PE Ratio: 41.44x vs. Industry Median 25.33x
• Expected EPS Growth: 33.09% vs. Industry Median 12.09%
• Expected Revenue Growth: 32.41% vs. Industry Median 9.47%
• Net Margins: 51.69% vs. Industry Median 9.99%

These metrics highlight NVDA’s superior growth profile and operating leverage, with gross margins and cash generation far exceeding peers. While valuation is elevated, the premium appears justified given the company’s dominant position in one of the market’s most transformative technology cycles.

Options Trade
A defined-risk bullish strategy ahead of earnings is the Sep 5, 2025 $180/$195/$200 Call Butterfly, entered for a net debit of $4.87. The position profits if NVDA rallies into the $195 zone post-earnings, with a maximum potential reward of $1,013 at that strike. The strategy breakeven at expiration is at $184.87, anywhere above that level at expiration the trade is profitable, offering a favorable risk/reward ratio of better than 2:1. Structuring the trade as a butterfly reduces capital outlay while targeting a specific move higher, making it an efficient way to position bullishly into the catalyst. Note: this is a short-term trade with only 10 days to expiration, so there is assignment risk if the short options become deep in-the-money.

NVDA – Daily

Trade Details

Strategy Details

Strategy: Long Call Butterfly

Direction: Bullish Butterfly

Details: Buy to Open 2 NVDA Sep 05 $180/$195/$200 Call Butterflies @ $4.87 Debit per Contract.

Total Risk: This trade has a max risk of $974 (2 Contracts x $487) based on a hypothetical $100k portfolio risking 1%. This is a speculative, short-duration play centered around the earnings event, so we suggest risking only 1% of the value of your portfolio and divide it by $487 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 124

Stop Loss: @ $2.44 (50% loss of premium)

View NVDA Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Tuesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View NVDA Trade

TTWO Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
Take-Two Interactive Software (TTWO) currently presents a compelling bearish opportunity. The OptionsPlay platform recently published a Bearish Trend Following Signal, noting that TTWO has experienced a short-term rally within a longer-term bearish trend that may offer a favorable risk/reward for a bearish trade. While the stock has enjoyed a short-term bounce, it remains fundamentally stretched with unsustainable metrics and deeply negative margins. At current levels, TTWO trades at a significant premium to peers despite delivering no EPS growth and operating with heavy losses. With a downside target of $192.50, the overall setup points to continued weakness and supports a bearish stance.

Technical Analysis
Shares of TTWO closed at $231.83, sitting between strong resistance at $245.08 and key support at $216.76. The recent rebound has failed to establish higher highs, keeping the broader price action neutral with downside risk intact. A break below $216.76 would likely accelerate selling pressure, bringing the $192.50 target into play. Momentum indicators remain mid-range (RSI ~53), suggesting there is room for a renewed bearish push. Price action continues to favor sellers unless the stock can convincingly reclaim and hold above $245 resistance.

Fundamental Analysis
Take-Two’s financial metrics paint a concerning picture relative to industry standards. The company is trading at a steep premium with a forward PE ratio well above peers, yet it shows no earnings growth. Revenue growth expectations are solid, but this has not translated into profitability, as the company struggles with cost management. The most troubling metric is its negative net margins, which remain far below the industry norm and highlight persistent structural challenges.

• Forward PE Ratio: 81.43x vs. Industry Median 20.77x
  
• Expected EPS Growth: 0% vs. Industry Median 12.42%
  
• Expected Revenue Growth: 18.53% vs. Industry Median 11.80%
  
• Net Margins: -72.92% vs. Industry Median 5.05%
  

Options Trade
The trade setup is to sell the Oct 3, 2025 $235/$245 call vertical spread at $3.37 credit. This bearish strategy benefits if TTWO remains below $235 at expiration. The maximum profit is $337 per spread, achieved if shares close at or below $235, while the maximum risk is capped at $663 if TTWO closes above $245. With 38 days to expiration, the trade offers a defined setup, effectively risking $2 to make $1, which aligns with the technical resistance overhead and the company’s weak profitability backdrop.

TTWO – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 3 TTWO Oct 03 $235/$245 Call Vertical Spreads @ $3.37 Credit per Contract.

Total Risk: This trade has a max risk of $1,989 (3 Contracts x $663) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $663 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue lower over the duration of this trade.

1M/6M Trends: Mildly Bullish/Neutral

Relative Strength: 7/10

OptionsPlay Score: 97

Stop Loss: @ $6.74 (100% loss to value of premium)

View TTWO Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View TTWO Trade

Closing Trade

• GOOGL – 78% gain: Buy to Close 6 Contracts (or 100% of your Contracts) Sep 05 $190/$185 Put Vertical Spreads @ $0.35 Debit. DailyPlay Portfolio:  By Closing 6 Contracts, we will be paying $210. We initially opened these 6 contracts on July 29 @ $1.60 Credit. Our gain, therefore, is $750.

DailyPlay Portfolio Review

Our Trades

AMZN – 25 DTE

Bullish Credit Spread – Amazon.com, Inc. (AMZN) – The recent CCI dip signaled strength within an established bullish trend, highlighted by a short-term pullback. We entered our position last week and plan to stay the course as the trade develops.

GOOGL – 11 DTE

The position will be closed at the market open on today (Monday).

GS – 144 DTE

Bullish Long Call – Goldman Sachs Group, Inc. (GS) – We recently initiated this position and intend to maintain it. Continued strength in the financial sector, driven by Powell’s dovish comments at Jackson Hole, remains supportive for GS.

LOW – 25 DTE

Bullish Credit Spread – Lowe’s Companies, Inc. (LOW) – We recently established this position and we plan to stay the course for now. 

MA – 39 DTE

Bullish Long Call – Mastercard Incorporated (MA) – We recently opened this position and plan to hold it for now. We chose a straight long call because the implied volatility (IV) rank was very low at 6/100, making spread strategies less favorable in terms of the risk/reward ratio compared to purchasing the call outright.

PM – 32 DTE

Bearish Credit Spread – Philip Morris International Inc. (PM) – We recently established this position and we plan to stay the course for now.

SCHW – 144 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – We continue to see upside potential, supported by strong fundamentals and resilience in the financial sector. We closed our initial long call position once the option’s delta hit 1.00, then shifted into a higher strike call with a 0.80 delta and a later expiration. We plan to hold steady with this adjustment.

MA Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Mastercard (MA) continues to demonstrate leadership in the global payments space, benefitting from structural tailwinds in digital transactions, cross-border volumes, and secular declines in cash usage. Despite trading at a premium valuation, the company’s consistent ability to generate superior profitability and cash flows supports the case for further upside. With recent price action confirming strength against broader markets, Mastercard presents a compelling bullish opportunity targeting the $640 level over the medium term.

Technical Analysis
Mastercard (MA) recently surpassed the critical $590 resistance level, gaining new momentum after a summer of consolidation. The stock is trading above its 20-day, 50-day, and 200-day moving averages, supporting a positive trend. RSI at ~66 indicates bullish momentum without overbought signals. This breakout, alongside outperformance against the S&P 500, suggests potential to rise further.

Fundamental Analysis
Mastercard’s fundamentals remain robust, with valuation justified by superior growth and profitability metrics relative to industry peers:

• Forward PE Ratio: 36.21x vs. Industry Median 12.53x
  
• Expected EPS Growth: 14.95% vs. Industry Median 13.30%
  
• Expected Revenue Growth: 13.10% vs. Industry Median 6.54%
  
• Net Margins: 44.93% vs. Industry Median 18.67%

Options Trade
A straightforward way to express bullish exposure is via a call option. The recommended trade is to buy the MA October 3, 2025 $585 call at $20.30 (~$2,030 per contract). This strike sits just below current levels, providing a slightly in-the-money position with strong delta exposure to upside. The risk is limited to the $2,030 premium paid, while upside remains unlimited should MA continue its breakout toward and above the $640 target. This setup provides defined risk with leveraged upside participation, making it an efficient vehicle to express a bullish view.

MA – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 1 MA Oct 03 $585 Call @ $20.30 Debit per Contract.

Total Risk: This trade has a max risk of $2,030 (1 Contract x $2,030) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $2,030 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 85

Stop Loss: @ $10.15 (50% loss of premium)

View MA Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View MA Trade

PM Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
With a premium valuation and softening margins, Philip Morris International offers limited upside while carrying heightened downside risk. The company’s inability to sustain profitability growth at levels that justify its multiple leaves shares vulnerable, particularly as price action continues to reject higher levels. This alignment of weak fundamentals and technical resistance supports a bearish stance.

Technical Analysis
The recent bounce in PM has stalled at the 50-day moving average, underscoring the lack of follow-through from buyers. The move fits the pattern of a counter-trend rally within a broader downtrend, rather than a true reversal. A decisive break of the $160 support level could act as a catalyst for accelerated selling, opening the door to a retest of $130 and confirming the bearish setup.

Fundamental Analysis
Philip Morris maintains stronger revenue and earnings growth than industry averages, but its valuation premium and weaker margins highlight a disconnect. Investors are paying a higher multiple for growth that may already be priced in, while profitability lags peers. This imbalance increases downside risk should growth expectations disappoint.

• Forward PE Ratio: 22.03x vs. Industry Median 17.36x
  
• Expected EPS Growth: 11.80% vs. Industry Median 7.57%
  
• Expected Revenue Growth: 7.84% vs. Industry Median 3.68%
  
• Net Margins: 21.08% vs. Industry Median 32.23%
  

Options Trade
To capture downside while defining risk, consider the Sep 26, 2025 175/185 call credit spread. This trade sells the 175 strike call and buys the 185 strike call for a net credit of $3.17, offering a maximum reward of $317 against a maximum risk of $683 per contract. The position profits if PM stays below $175, aligning with the expectation that resistance near the 50-day moving average holds. The structure provides favorable risk/reward and defined risk while taking advantage of bearish technical and fundamental signals.

PM – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 2 PM Sep 26 $175/$185 Call Vertical Spreads @ $3.17 Credit per Contract.

Total Risk: This trade has a max risk of $1,366 (2 Contract x $683) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $683 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue lower over the duration of this trade.

1M/6M Trends: Mildly Bullish/Neutral

Relative Strength: 9/10

OptionsPlay Score: 97

Stop Loss: @ $6.34 (100% loss to value of premium)

View PM Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Wednesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View PM Trade

Closing Trade

• PINS – 98% loss: Sell to Close 8 Contracts (or 100% of your Contracts) Aug 29 $38/$45 Call Vertical Spreads @ $0.05 Credit. DailyPlay Portfolio:  By Closing 8 Contracts, we will be collecting $40. We initially opened these 8 contracts on August 05 @ $2.20 Debit. Our loss, therefore, is $215 per contract.
• MS – 17% loss: Sell to Close 2 Contracts (or 100% of your Contracts) Aug 29 $140/$150 Call Vertical Spreads @ $4.85 Credit. DailyPlay Portfolio:  By Closing 2 Contracts, we will be collecting $970. We adjusted the short call on Aug 01 reducing our cost basis to $1,162 Debit. Our loss, therefore, is $96 per contract.

LOW Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
We have a bullish outlook on Lowe’s (LOW) as the company approaches its earnings report on August 20th. The recent breakout above key resistance suggests improving investor sentiment, with shares now trading in alignment with broader market strength. With Home Depot reporting ahead of Lowe’s, sector sentiment could act as an early catalyst. A strong Lowe’s earnings print would reinforce the breakout and position the stock for continuation toward our $265 upside target.

Technical Analysis
LOW has staged a notable recovery, breaking above its $235 resistance level and now trading firmly above the 20-day, 50-day, and 200-day moving averages. The stock’s momentum has accelerated in recent weeks, reflecting strong relative performance against the S&P 500. The RSI sits near overbought territory but remains supportive of sustained upside, particularly given the sharp improvement in trend structure.The 200-day moving average now serves as a critical support level near $240, while the breakout structure creates a clear pathway toward $265 should earnings act as the next upside catalyst.

Fundamental Analysis
Lowe’s valuation remains modestly discounted relative to peers, despite comparable growth prospects and stronger profitability metrics. This relative undervaluation, coupled with earnings momentum and resilient demand in the home improvement category, provides a constructive setup for further upside.

• Forward PE Ratio: 20.57x vs. Industry Median 23.35x
  
• Expected EPS Growth: 7.21% vs. Industry Median 7.18%
  
• Expected Revenue Growth: 2.86% vs. Industry Median 3.75%
  
• Net Margins: 8.22% vs. Industry Median 6.55%

Options Trade
We recommend a bullish put credit spread to position for continued upside while taking advantage of elevated implied volatility ahead of earnings. Specifically, selling the Sep 19, 2025 $247.5/$240 put spread for a net credit of $2.51. The trade risks $499 to make a maximum reward of $251, offering a 50% potential return on risk. This strategy profits if LOW holds above $247.50 into expiration, aligning with our bullish outlook that earnings strength will reinforce momentum and sustain prices above key support levels.

LOW – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 4 LOW Sep 19 $247.50/$240 Put Vertical Spreads @ $2.51 Credit per Contract.

Total Risk: This trade has a max risk of $1,996 (4 Contracts x $499) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $499 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 91

Stop Loss: @ $5.02 (100% loss to value of premium)

View LOW Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View LOW Trade

DailyPlay Portfolio Review

Our Trades

AMZN – 32 DTE

Bullish Credit Spread – Amazon.com, Inc. (AMZN) – We recently established this position and we plan to stay the course for now.

GOOGL – 18 DTE

Bullish Credit Spread – Alphabet Inc. (GOOGL) – The position remains profitable. Bullish momentum continued last week, with GOOGL trading above all major moving averages. The 20-day moving average is acting as short-term support, so we plan to continue holding the trade.

GS – 151 DTE

Bullish Long Call – Goldman Sachs Group, Inc. (GS) – We recently established this position and we plan to stay the course for now.

MS – 11 DTE

Bullish Debit Spread – Morgan Stanley (MS) – The position is currently at a slight loss. We made an adjustment a few weeks ago to reduce overall risk, and with expiration drawing near, we will continue holding but will monitor it closely.

PINS – 11 DTE

Bullish Call Spread – Pinterest, Inc. (PINS) – The stock fell sharply following the company’s earnings announcement. The position is down near its maximum loss, and since we did not have the opportunity to close at the 50% stop loss, we may allow the position to run its course.

SCHW – 151 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – We continue to see upside potential, supported by strong fundamentals and resilience in the financial sector. We closed our initial long call position once the option’s delta hit 1.00, then shifted into a higher strike call with a 0.80 delta and a later expiration. We plan to hold steady with this adjustment.