DailyPlay – Opening Trade (SNPS) & Closing Trade (TTWO) – September 09, 2025

Closing Trade

• TTWO – 115% loss: Buy to Close 3 Contracts (or 100% of your Contracts) Oct 03 $235/$245 Call Vertical Spreads @ $7.25 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $2,175. We initially opened these 3 contracts on August 26 @ $3.37 Credit. Our loss, therefore, is $388 per contract.

SNPS Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Synopsys, Inc. (SNPS) is well positioned for continued outperformance as it approaches earnings, supported by both strong structural demand in software-driven semiconductor design and resilient earnings growth expectations. The company has consistently demonstrated pricing power and scale advantages that allow it to outperform peers, and with industry adoption of AI-driven workflows accelerating, SNPS is expected to benefit from increased design complexity and recurring revenue streams. Heading into the earnings release tonight after the close, the stock’s recent consolidation provides an attractive setup for a potential upside move.

Technical Analysis
Inside the OptionsPlay platform, a Bullish Trend Following Alert was generated when Synopsys, Inc. showed a modest pullback within its broader uptrend, presenting an appealing risk/reward setup for traders seeking a bullish position. When the stock broke above the $580 resistance level, set a new all-time high of $651.73, and has since retraced, consolidating around the 20-day and 50-day moving averages while remaining solidly above the 200-day moving average. With the RSI steady at 53, conditions remain favorable for further upside, with $650 as our target. The earnings report could provide the catalyst to break the stock out of this consolidation pattern.

Fundamental Analysis
Synopsys trades at a valuation premium relative to industry averages, but this is underpinned by superior growth and profitability metrics. The company’s margins and forward growth expectations outpace peers, justifying the elevated multiple and highlighting further potential for earnings-driven upside.

• Forward PE Ratio: 35.72x vs. Industry Median 24.02x
• Expected EPS Growth: 14.01% vs. Industry Median 12.38%
• Expected Revenue Growth: 15.63% vs. Industry Median 9.43%
• Net Margins: 34.77% vs. Industry Median 9.10%

Options Trade
The proposed strategy is a bullish call vertical on Synopsys (SNPS), using the October 24th expiration. The trade involves buying the 610 strike call and selling the 670 strike call for a net debit of $20.70, or $2,070 per spread. This defines risk at $2,070, with a maximum reward potential of $3,930 if SNPS closes above $670 at expiration. The structure is efficient, as it lowers the upfront cost compared to outright calls while maintaining strong upside leverage. With 46 days until expiration, the trade allows time for momentum to follow through, and the risk/reward skew of nearly 2:1 makes it a favorable way to position for continued strength in the stock.

SNPS – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 1 SNPS Oct 24 $610/$670 Call Vertical Spreads @ $20.70 Debit per Contract.

Total Risk: This trade has a max risk of $20,70 (1 Contract x $2,070) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $2,070 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: 108

Stop Loss: @ $10.35 (50% loss of premium)

View SNPS 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 SNPS Trade