DailyPlay – Opening Trade (TTWO) & Closing Trade (NVDA) – May 15, 2025

Closing Trade

• NVDA – 27% gain: Sell to Close 1 Contract (or 100% of your Contracts) Sept19/May 23 $90/$125 Call Diagonal Spreads @ $36.92 Credit. DailyPlay Portfolio:  By Closing this Contract, we will receive $3,692. We initially opened on April 15 @ $29.90 Debit and then the 2nd leg on May 7 @ $0.91 Credit, giving us a net Debit of $28.99. Our gain, therefore, is $793.

TTWO Bearish Opening Trade Signal

Investment Rationale

Take-Two Interactive (TTWO) has staged an impressive rally into earnings, fueled by anticipation around its upcoming release pipeline and broader market enthusiasm for AI-driven productivity tailwinds. However, the stock now appears priced for perfection. With valuations stretched relative to peers and no EPS growth expected in the near term, the risk skew heading into earnings favors the downside. The company’s delay of key title releases or muted forward guidance could catalyze a near-term re-rating lower, particularly if results disappoint in a market that has grown increasingly unforgiving toward underwhelming tech narratives.

TTWO has surged to new 52-week highs above $229, breaking out from a multi-month consolidation range. The stock is extended well above its 20-day and 50-day moving averages, reflecting strong short-term momentum. However, the sharp rally has been accompanied by declining volume, and recent candles show signs of exhaustion with upper wicks and lower closes. With little support until the $220 breakout level, a bearish reaction to earnings could trigger a swift retracement toward the 50-day moving average near $214.

TTWO trades at a premium valuation while facing near-term headwinds from a lack of earnings growth and elevated expectations around future content. Any delay in marquee title launches or commentary around margin compression could weigh on sentiment, especially given the industry’s competitive backdrop.

• Forward PE Ratio: 33.10x vs. Industry Median 19.6x
• Expected EPS Growth: 0% vs. Industry Median 18.30%
• Expected Revenue Growth: 19.19% vs. Industry Median 14.33%
• Net Margins: -67.07% vs. Industry Median 6.36%

The TTWO Jun 6, 2025 230/220 Put Vertical spread is initiated by buying the 230 put and selling the 220 put, with 23 days remaining until expiration. The trade is entered for a net debit, which represents the maximum risk. With a reward-to-risk ratio of approximately 1.41:1, the setup offers an attractive profile, where the potential gain outweighs the defined risk. With Take-Two Interactive set to announce earnings after the close, the strategy presents a defined-risk bearish play ahead of a key event.

TTWO – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 2 TTWO June 6 $230/$220 Put Vertical Spreads @ $4.15 Debit per Contract.

Total Risk: This trade has a max risk of $830 (2 Contract x $415) based on a hypothetical $100k portfolio risking 1% on this trade. We suggest risking only 1% of the value of your portfolio and divide it by $415 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bearish trade on a stock that is expected to move lower over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 111

Stop Loss: @ $2.08 (50% loss of premium)

View TTWO 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 Wednesday ‘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 TTWO Trade