DailyPlay – Opening Trade (MSFT) & Closing Trade (NVDA) – June 17, 2025

Closing Trade

• NVDA – 60% gain: Sell to Close 4 Contracts (or 100% of your Contracts) June 20 $138/$145 Call Vertical Spreads @ $5.39 Credit. DailyPlay Portfolio:  By Closing 4 Contracts, we will be collecting $2,156. We adjusted the 4 short calls June 03 reducing our cost basis to $1,348 Debit. Our gain, therefore, is $808.

MSFT Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Microsoft stands out as both offense and defense among mega-cap tech stocks. Its core enterprise business is highly resilient, shielding it from consumer-driven macro headwinds and making it a stable defensive play amid market volatility. On offense, Azure remains the fastest-growing hyperscaler, with 35 percent revenue growth and a significant AI contribution, well ahead of AWS and Google Cloud. Microsoft’s deep AI integration, powered by OpenAI, positions it squarely at the forefront of the next technology wave. With a dominant footprint across cloud, productivity, and developer ecosystems, MSFT is well positioned to deliver durable long-term growth while providing downside protection.

Technical Analysis
MSFT recently broke out cleanly above 420 resistance and has since accelerated to new all-time highs near 480, maintaining a strong, orderly uptrend. Price is firmly above all major moving averages, with the 20-day EMA providing steady support. While RSI is extended, it is not diverging, indicating ongoing trend strength rather than exhaustion. Relative strength ranks high at 9 out of 10, and volume confirms conviction behind the move. With strong momentum in place, MSFT looks poised to push toward the 520 area in the near term.

Fundamental Analysis
Microsoft’s premium valuation is supported by best-in-class fundamentals and strategic leadership in AI and cloud infrastructure. Its scale, fortress balance sheet, and high-margin software model uniquely combine growth and defensiveness.

• Forward PE Ratio: 31.48x vs. Industry Median 27.72x
  
• Expected EPS Growth: 14.24% vs. Industry Median 11.48%
  
• Expected Revenue Growth: 13.87% vs. Industry Median 9.36%
  
• Net Margins: 35.79% vs. Industry Median 9.80%
  

Options Trade
To establish a bullish position with defined risk, sell the MSFT Aug 1, 2025, 475/460 put vertical spread for a net credit. This bull put vertical spread achieves maximum profit if MSFT closes above $475 at expiration, offering a high-probability, risk-controlled strategy. With a risk/reward ratio of 0.51, this trade aims to earn $0.51 for every $1.00 risked, making it an attractive option for bullish investors seeking a high-probability strategy to complement their optimistic outlook on MSFT.

MSFT – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 2 MSFT Aug 01 $475/$460 Put Verticals @ $5.08 Credit per Contract.

Total Risk: This trade has a max risk of $1,984 (2 Contracts x $992) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $992 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: 9/10

OptionsPlay Score: 90

Stop Loss: @ $10.16 (100% loss to value of premium)

View MSFT 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 MSFT Trade