OptionsPlay DailyPlay Ideas Menu – May 7th, 2026

💰 The Income Generators (High Probability, Cash Flow)

• NET: Bullish Put Spread capitalizing on a major technical breakout supported by robust edge-computing demand and AI infrastructure expansion.
• RDDT: Bullish Put Spread leaning on strong relative strength in the communications sector and highly profitable AI data licensing revenue.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• (No trades in this category today)

🛡️ The Portfolio Protectors (Hedges & Bearish Bets)

• (No trades in this category today)

1. NET ($248.59) – The Edge Computing Breakout

• We’re betting on: If Cloudflare sustains its breakout momentum and edge-network consumption remains robust, the stock will continue its push toward the $270 target and stay safely above our $245 strike through mid-June.
• The Trade: Sell to Open the NET Jun 12, 2026 245/220 Put Vertical @ $9.45 Credit.
  • 🟢 BUY TO OPEN Jun 12, 2026 220 Put @ $10.55
  • 🔴 SELL TO OPEN Jun 12, 2026 245 Put @ $20.00
• Trade Metrics: POP: 54.21% | Collect $945.00 per contract vs. a Max Risk of $1,555.00 (1.6:1).
• The Setup: Cloudflare’s technical breakout above the critical $230 level is highly constructive for further upside to our $270 target. Fundamentally, the company is proving it is much more than a content delivery network; its aggressive expansion into “Workers AI” and zero-trust security is capturing massive enterprise IT spend. Because inference at the edge is becoming a necessity for AI application performance, NET commands a premium multiple. This put spread allows us to capture rich premium while leaning on the newly established structural floor near $240.
• Management:
  • Stop Loss: Buy back the spread at $18.90 (100% of credit received).
  • Take Profit: Buy back the spread at $4.72 (50% of max gain).

2. RDDT ($166.56) – Monetizing the Community

• We’re betting on: If Reddit maintains its robust user growth and high-margin AI data licensing agreements continue to pad the bottom line, the stock will push toward $190 and easily hold above our $165 strike.
• The Trade: Sell to Open the RDDT Jun 18, 2026 165/150 Put Vertical @ $6.55 Credit.
  • 🟢 BUY TO OPEN Jun 18, 2026 150 Put @ $6.80
  • 🔴 SELL TO OPEN Jun 18, 2026 165 Put @ $13.35
• Trade Metrics: POP: 54.41% | Collect $655.00 per contract vs. a Max Risk of $845.00 (1.3:1).
• The Setup: Reddit recently broke out above $160, setting up a technical trajectory toward a $190 upside target. This move is heavily supported by massive relative strength across the Communications sector. Underneath the hood, the fundamental thesis is anchored by their evolving revenue model. Beyond standard advertising growth, Reddit is successfully executing highly lucrative, 100%-margin data licensing deals with major hyperscalers to train LLMs. This unique data moat provides a strong fundamental floor, making a short put spread the optimal strategy to capture upside while mitigating directional risk.
• Management:
  • Stop Loss: Buy back the spread at $13.10 (100% of credit received).
  • Take Profit: Buy back the spread at $3.27 (50% of max gain).