DailyPlay – Opening Trade (XYZ) – August 07, 2025
XYZ Bullish Opening Trade Signal Investment Rationale...
Read MoreStrategy: Call Debit Spread
Strategy Direction: Bullish
Details: Buy May 20, 2022 $540/$570 Call Vertical @ $12.13 Debit
Trend Continuation Signal: This is a bullish strategy on a stock or ETF that is experiencing a bullish trend.
1M/6M Trends: Bullish/Bullish
Technical Score: 10/10
OptionsPlay Score: 87
Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade.
UNH has broken out to new all-time highs, finding support on Monday this week right at its bearish Propulsion Momentum level and then shooting higher. We expect this to carry higher over coming weeks to target the $570 level, where both daily and weekly charts show Propulsion Full Exhaustion targets. (Please note that the company reports quarterly earnings next week (4/14 before the open) so realize there is increased risk and volatility expected around that report.) So, we’ll buy the May 20th $540 call and sell the $570 against it for a $12.12 debit. (Given the high cost to each spread, consider doing two of them in order to allow some exit strategy that isn’t all or nothing. We’re laying out about 40% of the strike differential, which is a bit higher than I normally like. However, the options are a bit high-priced because of the upcoming earnings report.
XYZ Bullish Opening Trade Signal Investment Rationale...
Read MoreCRWD Bearish Opening Trade Signal Investment Rationale...
Read MoreClosing Trade PINS Bullish Opening Trade Signal Investment...
Read MoreDailyPlay Portfolio Review Our Trades FSLR – 11 DTE...
Read More
Share this on