OptionsPlay DailyPlay Ideas Menu – Jan 16th, 2026

💰 The Income Generators (High Probability, Cash Flow)

• LULU: Credit Put Spread capitalizing on the pullback to major support as international growth starts to accelerate.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• ABNB: Debit Call Spread betting on a valuation rebound as travel demand stabilizes and margins expand.

🛡️ The Portfolio Protectors (Hedges & Bearish Bets)

• TGT: Covered Call generating income to hedge against lingering consumer discretionary headwinds after a strong rally.

1. LULU ($205.01) – The International Growth Play

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• The Trade: Sell to Open the LULU Feb 27, 2026 205/190 Put Vertical @ $6.49 Credit.
  • BUY TO OPEN Feb 27, 2026 $190 Put @ $4.04
  • SELL TO OPEN Feb 27, 2026 $205 Put @ $10.53
• Trade Metrics: POP: 56.75% | Collect $649.00 per contract vs. a Max Risk of $851.00 (1.3:1).
• The Why: Despite recent U.S. softness, Lululemon’s holiday sales beat and international momentum suggest the pullback to the $200 level is an attractive entry point.
• The Technicals: The stock is in a Neutral Trend (1M) but retains a Mildly Bullish Trend (6M) with a Relative Strength of 2/10. It is currently testing Support at $192, while major Resistance sits at $219.
• Management:
  • Stop Loss: Buy back the spread at $12.98 (100% of credit received).
  • Take Profit: Buy back the spread at $3.25 (50% of max gain).

2. ABNB ($132.60) – The Travel Rebound

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• The Trade: Buy to Open the ABNB Mar 20, 2026 130/150 Call Vertical @ $7.35 Debit.
  • BUY TO OPEN Mar 20, 2026 $130 Call @ $9.73
  • SELL TO OPEN Mar 20, 2026 $150 Call @ $2.38
• Trade Metrics: POP: 38.23% | Pay $735.00 per contract vs. a Max Reward of $1,265.00 (1.7:1).
• The Why: With valuation resetting and margins expanding from AI efficiencies, Airbnb is positioned for a recovery as it rolls out new inventory types to capture demand.
• The Technicals: The stock is in a Neutral Trend (1M) but a Bullish Trend (6M) with a Relative Strength of 3/10. It is currently testing Support at $116, while major Resistance sits at $145.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Feb 12, which may require active management.
  • Stop Loss: Sell the spread at $3.68 (50% loss on premium).
  • Take Profit: Sell the spread at $12.86 (75% gain on premium).

3. TGT ($111.13) – Hedging the Rally

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• The Trade: Sell to Open the TGT Feb 27, 2026 121 Covered Call @ $1.81 Credit.
• Trade Metrics: POW: 77.76% | Collect $180.50 per contract (14.91% Annualized Yield or 1.65% in 43 Days).
• The Why: Target is stabilizing after a 22% rally, but we are using covered calls to hedge against lingering consumer discretionary headwinds and weak foot traffic.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 8/10. It is currently testing Resistance at $121, while major Support sits at $107.
• Management:
  • Note: These management rules are optional. You may choose to hold to expiration if you are comfortable with the obligation to sell shares at the strike price.
  • Stop Loss: Buy back the call at $3.62 (100% of credit received).
  • Take Profit: Buy back the call at $0.91 (50% of max gain).