DailyPlay – Opening Trade (PINS) & Closing Trade (TGT, NEM) – August 05, 2025

Closing Trade

• TGT – 71% loss: Sell to Close 2 Contracts (or 100% of your Contracts) Aug 15 $100 Calls @ $2.10 Credit. DailyPlay Portfolio:  By Closing 2 Contracts, we will be collecting $420. We initially opened these 2 contracts on July 02 @ $7.23 Debit. Our loss, therefore, is $513 per contract.
• NEM – 70% gain: Sell to Close 7 Contracts (or 100% of your Contracts) Aug 15 $60/$67 Call Vertical Spreads @ $4.77 Credit. DailyPlay Portfolio:  By Closing 7 Contracts, we will be collecting $3,339. We initially opened these 7 contracts on July 23 @ $2.80 Debit. Our gain, therefore, is $1,379.

PINS Bullish Opening Trade Signal

Investment Rationale

Investment Thesis:
Pinterest (PINS) is positioned for upside into its upcoming earnings report this Thursday, August 7th after the close, driven by a combination of improving user monetization, expanding margins, and tailwinds from AI-powered product innovation. While the stock has seen a steady recovery since April, investor expectations remain moderate relative to its long-term growth potential. With earnings risk skewed to the upside and fundamentals showing accelerating momentum, Pinterest represents an attractive short-term bullish setup into the print.

Technical Analysis:
PINS remains in a strong uptrend since its late-May breakout, with price action consistently supported by the 20-, 50-, and 200-day moving averages. Shallow pullbacks have been met with aggressive buying, creating a steady pattern of higher highs and higher lows. Momentum is robust, RSI sits at 68, just shy of overbought, confirming continued buying without immediate exhaustion. Technical indicators such as OBV and rising moving averages highlight strong accumulation and broad participation. A close above the key $40 resistance, especially post-earnings, could spark fresh momentum toward the all-time highs near $45, given the absence of major overhead supply and ongoing bullish signals.

Fundamental Analysis:
Pinterest’s underlying fundamentals reflect accelerating performance and margin expansion, which support a bullish thesis into earnings:

• Forward PE Ratio: 22.32x vs. Industry Median 20.85x
• Expected EPS Growth: 23.25% vs. Industry Median 12.45%
• Expected Revenue Growth: 13.94% vs. Industry Median 11.80%
• Net Margins: 50.41% vs. Industry Median 6.28%

While the company trades at a bit of a premium valuation, its superior revenue growth and margins justify the higher multiple, particularly as AI monetization and product innovation begin to materialize.

Options Trade:
A defined-risk bullish play can be established via the PINS Aug 29, 2025, 38/45 Call Vertical at a net debit of $2.48 ($248 per spread). The trade risks $248 to target a maximum reward of $452 if PINS closes at or above $45 at expiration. This vertical structure offers a favorable risk/reward profile of roughly 1.82:1 while lowering breakeven to $40.48, allowing participation in potential upside from earnings without the full premium outlay of buying calls outright. The August 29 expiry provides time for a post-earnings move to fully play out while minimizing theta decay ahead of the catalyst.

PINS – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 8 PINS Aug 29 $38/$45 Call Vertical Spreads @ $2.48 Debit per Contract.

Total Risk: This trade has a max risk of $1,984 (8 Contracts x $248) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $248 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: 107

Stop Loss: @ $1.24 (50% loss of premium)

View PINS 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 PINS Trade