DailyPlay – Opening Trade (TFC) – September 03, 2025

TFC Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Truist Financial Corp. (TFC) is showing renewed momentum as the regional banking sector stabilizes and investors regain confidence in dividend-paying financials. With the stock breaking through key resistance and trading at an attractive valuation relative to peers, the setup points to further near-term upside. The company’s strong capital position, steady dividend yield, and improving growth outlook provide a supportive backdrop for a bullish bias toward the $50 level.

Technical Analysis
TFC recently cleared the $45 resistance level, confirming a breakout and signaling strength relative to both the S&P 500 and its sector peers. The stock is now trading above its 20-, 50-, and 200-day moving averages, which are trending higher and reinforcing the bullish momentum. Near-term support sits around $44, while the next key resistance is near $50, aligning with the upside target. With RSI in the mid-50s, the stock maintains room to extend gains without appearing overbought, suggesting a constructive risk/reward setup for bullish positioning.

Fundamental Analysis
TFC is modestly undervalued compared to peers while delivering competitive growth expectations and stable margins. The bank’s strong balance sheet and efficient operations enhance its ability to capitalize on sector tailwinds and rising loan growth opportunities. This combination of value and growth drivers supports further stock appreciation.

• PB Ratio: 1.02x vs. Industry Median 1.37x
  
• Expected EPS Growth: 11.45% vs. Industry Median 11.45%
  
• Expected Revenue Growth: 17.38% vs. Industry Median 5.73%
  
• Net Margins: 26.06% vs. Industry Median 26.86%
  

Options Trade
The proposed strategy is a bull call vertical spread in TFC, using the October 17, 2025 expiration. The trade involves buying the 45 strike call and simultaneously selling the 50 strike call for a net debit of $2.30 ($230 per spread). This structure caps risk at the premium paid, while also defining a maximum profit potential of $270 per spread if TFC closes at or above $50 by expiration. The spread offers a favorable risk/reward profile of roughly 1:1.2, providing leveraged upside exposure while mitigating downside losses to the initial outlay. This makes the trade an efficient way to express a moderately bullish view without overcommitting capital.

TFC – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 8 TFC Oct 17 $45/$50 Call Vertical Spreads @ $2.30 Debit per Contract.

Total Risk: This trade has a max risk of $1,840 (8 Contracts x $230) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $230 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: 7/10

OptionsPlay Score: 89

Stop Loss: @ $1.15 (50% loss of premium)

View TFC 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 Tuesday’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 TFC Trade