OptionsPlay DailyPlay Ideas Menu – July 7th, 2026

What’s Driving The Market

• Records across the board: US equities opened the post-holiday week with a broad, semis-led advance that pushed the Dow above 53,000 for the first time (53,055.91), the S&P 500 to a record close of 7,537.43 (+0.72%), and the Nasdaq up 1.12%, with the Russell 2000 confirming breadth as the VIX compressed to 15.97.
• Cyclical rotation, not defensive: Chip leadership was the clearest signal (Broadcom +3.7%, AMD +6.6%, Intel +1.5%, Nvidia +0.4%) alongside Boeing, IBM, and Goldman Sachs, while defensives lagged (AMGN, DIS, MRK all down), pointing to a risk-on rotation into quality cyclicals.
• Fed is the week’s swing variable: Wednesday’s FOMC minutes covering Chair Warsh’s first meeting and Thursday’s June nonfarm payrolls are the two inputs that could reprice the front end of the curve into the July 28-29 meeting, with today’s easing 10-year yield (~4.47%) leaning dovish.
• Oil soft, gold bid: OPEC+ agreed to raise August output by 188,000 bpd, pushing Brent to ~$72, but the Strait of Hormuz delivery constraint caps the downside, and gold’s simultaneous 0.83% rally to ~$4,160 shows the geopolitical residual is still priced.

OptionsPlay Trade Ideas: The Daily Brief

💰 The Income Generators (High Probability, Cash Flow)

• RDDT: Pressing our winning position by selling a put spread into the breakout above $200 on record advertising and AI-licensing growth.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• RMD: Buying a call spread on a fresh early breakout above $210 toward a $250 target.
• SE: Adding to a winning position with a call spread on the breakout above $100 as all three business engines re-accelerate.

🛡️ The Portfolio Protectors (Hedges & Bearish Bets)

• No trades today for this category.

1. RDDT ($200.86): Pressing the Breakout Winner Above $200

• We’re betting on: Reddit compounding advertising and AI data-licensing revenue at over 60% growth with expanding margins, and for RDDT to stay above $200 by expiration to capture the full credit.
• The Trade: Sell to Open the RDDT Aug 21 2026 200/170 Put Vertical @ $12.89 Credit.
  • 🔴 SELL TO OPEN Aug 21 2026 200 Put @ $22.67
  • 🟢 BUY TO OPEN Aug 21 2026 170 Put @ $9.78
• Trade Metrics: POP: 52.85% | Collect $1,289 per contract vs. a Max Risk of $1,711 (1.33:1).
• The Setup: RDDT broke out above the $200 level today, closing at $200.86 (+3.18%) with 1M and 6M trends both bullish and an OptionsPlay Score of 93. We are adding to an open Reddit position that is already marked up about 54% (+$692), pressing a confirmed winner rather than chasing a new name. The fundamentals back the move: Q1 revenue grew 69% to $663.4 million, advertising rose 74%, daily active uniques reached 126.8 million, and the Google and OpenAI data-licensing deals now exceed $200 million a year, together driving a 40% adjusted EBITDA margin. This short 200/170 put vertical collects $1,289 against $1,711 of defined risk, profiting as long as RDDT holds above the $200 breakout into a semis and AI-led tape.
• Management:
  • ⚠️ Warning: Earnings are scheduled for July 30, 2026, potentially requiring active monitoring around the event.
  • Stop Loss: Buy back the spread at $25.78 (100% loss of credit received).
  • Take Profit: Buy back the spread at $6.45 (50% of max gain).

2. RMD ($218.40): Fresh Breakout Toward $250

• We’re betting on: ResMed turning the GLP-1 fear into a diagnosis tailwind while compounding double-digit EPS growth, and for RMD to close above $250 by expiration to capture the full spread.
• The Trade: Buy to Open the RMD Aug 21 2026 220/250 Call Vertical @ $9.07 Debit.
  • 🟢 BUY TO OPEN Aug 21 2026 220 Call @ $11.70
  • 🔴 SELL TO OPEN Aug 21 2026 250 Call @ $2.63
• Trade Metrics: POP: 33.98% | Pay $907 per contract vs. a Max Reward of $2,093 (2.31:1).
• The Setup: RMD just broke out above $210 today, jumping 4.18% to $218.40 and reclaiming the $215 level that now flips to support, triggering a fresh early-breakout signal on strong volume with an OptionsPlay Score of 107. The 1M trend is bullish even as the 6M reads neutral, marking an early turn in a beaten-down quality name. On fundamentals, ResMed is compounding roughly 21% EPS growth and management frames the GLP-1 wave as a driver of new sleep-apnea diagnoses rather than a threat, a view Citi echoed by lifting its price target to $345. This 220/250 debit call vertical pays $907 to control $2,093 of upside, needing a close above $250 by expiration for the full spread, with a breakeven at $229.07.
• Management:
  • ⚠️ Warning: Earnings are scheduled for August 6, 2026, potentially requiring active monitoring around the event.
  • Stop Loss: Sell the spread at $4.54 (50% loss on premium).
  • Take Profit: Sell the spread at $15.87 (75% gain on premium).

3. SE ($105.00): Adding to the Sea Breakout

• We’re betting on: Sea firing on all three engines with Shopee GMV, Garena bookings, and Monee lending re-accelerating, and for SE to close above $125 by expiration to capture the full spread.
• The Trade: Buy to Open the SE Aug 21 2026 105/125 Call Vertical @ $6.08 Debit.
  • 🟢 BUY TO OPEN Aug 21 2026 105 Call @ $9.78
  • 🔴 SELL TO OPEN Aug 21 2026 125 Call @ $3.70
• Trade Metrics: POP: 35.51% | Pay $608 per contract vs. a Max Reward of $1,392 (2.29:1).
• The Setup: SE broke out above $100 today on strong volume, rising 1.65% to $105.00 and testing $106 resistance with a 1M bullish and 6M mildly bullish trend and a standout OptionsPlay Score of 117. We are adding to an open Sea position already up about 33% (+$600), pressing a winner as the stock reclaims its trend. All three engines are firing: Q1 revenue rose 46.6% to $7.1 billion, Shopee GMV hit a record and grew 30%, Garena delivered its strongest quarter since 2021, and Monee lending grew 57.8%, lifting adjusted EBITDA above $1 billion for the first time. This 105/125 debit call vertical pays $608 to control $1,392 of upside, needing a close above $125 by expiration for the full spread against a $111.08 breakeven.
• Management:
  • ⚠️ Warning: Earnings are scheduled for August 11, 2026, potentially requiring active monitoring around the event.
  • Stop Loss: Sell the spread at $3.04 (50% loss on premium).
  • Take Profit: Sell the spread at $10.64 (75% gain on premium).