DailyPlay – Opening Trade (SCHW) & Closing Trade (PINS) – May 13, 2025

Closing Trade

• PINS – 94% gain: Sell to Close 11 Contracts (or 100% of your Contracts) June 20 $27/$32 Call Vertical Spreads @ $3.96 Credit. DailyPlay Portfolio:  By Closing all 11 Contracts, we will receive $4,356. We initially opened these 11 Contracts on May 8 @ $2.04 Debit. Our gain, therefore, is $2,112.

SCHW Bullish Opening Trade Signal

Investment Rationale

Charles Schwab Corp. (SCHW) presents a compelling bullish opportunity as macroeconomic tailwinds and firm-specific catalysts align to support further upside. The recent steepening of the yield curve materially enhances Schwab’s net interest income potential, particularly benefiting its core business of investing client cash in longer-duration securities. In tandem, Schwab’s operational leverage and efficient cost structure position it to capitalize on incremental top-line growth. With the stock breaking out of its multi-month range and strong relative strength vs. the S&P 500, the backdrop is favorable for a continued rally toward the $95 target level.

On Monday, May 12th, SCHW reached an intraday high of $87.00, surpassing its previous closing peak of $85.43 from January 2023 before ending the session at $85.37. The stock now trades firmly above its 20-, 50-, and 200-day moving averages, with strong volume trends and positive momentum indicators confirming the breakout. The price action signals a bullish continuation pattern, with sustained closes above prior resistance reinforcing the potential for further upside.

Charles Schwab’s valuation and profitability metrics offer an attractive setup relative to its peers. Its fundamental strength is reinforced by a steepening yield curve that supports enhanced interest income dynamics:

• Forward PE Ratio: 19.63x vs. Industry Median 23.24x
• Expected EPS Growth: 22.33% vs. Industry Median 11.89%
• Expected Revenue Growth: 11.19% vs. Industry Median 7.96%
• Net Margins: 31.71% vs. Industry Median 23.42%

Purchase SCHW December 19, 2025, 75 Call option. This long-dated call, with a delta of approximately 0.80, offers leveraged exposure and tracks the stock closely if momentum continues. The December expiration allows time for the fundamentals to mature, potentially capturing gains fueled by strong earnings and macro tailwinds. Buying the call, rather than shares, limits downside risk while maintaining unlimited upside potential until the option’s expiration date, particularly if SCHW advances toward or beyond the $95 technical target.

SCHW – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 1 SCHW Dec 19 $75 Call @ $14.90 Debit per Contract.

Total Risk: This trade has a max risk of $1,490 (1 Contract x $1,490) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,490 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: 82

Stop Loss: @ $7.45 (50% loss of premium)

View SCHW 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 SCHW Trade