DailyPlay – Opening Trade (NEE) – March 20, 2025

NEE Bullish Opening Trade Signal

Investment Rationale

NextEra Energy, Inc. (NEE) recently broke out above resistance while outperforming the S&P 500, suggesting further upside toward a target of $85.

Fundamentally, NEE is moderately undervalued, trades in line with its peers, and is expected to grow at a faster pace while offering superior profitability metrics. NEE has a forward P/E ratio of 19.15x compared to the industry average of 19.14x. Its expected EPS growth is 8.32%, versus the industry average of 7.65%, and its expected revenue growth is 10.95% compared to 4.39% for the industry. NEE also boasts net margins of 28.06%, significantly higher than the industry average of 14.17%.

NEE – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 5 Contracts NEE April 25 $68 Calls @ $4.33 Debit per Contract.

Total Risk: This trade has a max risk of $2,165 (5 Contracts x $433) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $433 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Mildly Bearish/Neutral

Relative Strength: 3/10

OptionsPlay Score: 80

Stop Loss: @ $2.17 (50% loss of premium)

View NEE 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. 

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