DailyPlay – Opening Trade (META) & Closing Trade (WMT) – November 21, 2025

Closing Trade

• WMT – 65% loss: Sell to Close 15 Contracts (or 100% of your Contracts) Dec 19 $100/$95 Put Vertical Spreads @ $0.46 Credit. DailyPlay Portfolio:  By Closing 15 Contracts, we will be collecting $690. We initially opened these 15 contracts on November 18 @ $1.32 Debit. Our loss, therefore, is $86 per contract.

META Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Meta Platforms’ recent pullback appears to stem not from weakening fundamentals, but from the company’s updated 2025 capital-expenditure outlook, which introduced near-term uncertainty around the monetization timeline of its AI investments. Management’s decision to substantially increase spending on AI infrastructure has weighed on valuation as investors reassess the short-term return profile, even though the long-term rationale and competitive positioning remain compelling. Meta still benefits from a resilient advertising engine, strong cash-flow generation, and expanding capabilities across AI-driven engagement and automation. With analysts continuing to project meaningful upside and maintaining consensus price targets well above current levels, this dislocation offers an opportunity to position for long-term strength despite near-term sentiment pressure tied to elevated spending.

Technical Analysis
META recently surged above its previous $720 resistance level before reversing sharply, retesting key support and driving the stock into oversold territory, with RSI dropping into the low 20s. While short-term downside momentum remains a concern and the broader trend retains a bearish bias, highlighted by the 20-day moving average crossing below the 200-day moving average and the 50-day moving average turning lower, the stock is showing early signs of consolidation. Supporting this view, OptionsPlay has triggered a Bullish Counter-Trend Alert, suggesting that although near-term weakness persists, META may be stabilizing. Such alerts typically signal a slowdown in selling pressure and cautious re-entry by buyers, creating a potentially more favorable risk/reward setup for selectively timed, long-dated bullish positions.

Fundamental Analysis
Meta maintains attractive long-term fundamentals supported by strong operating leverage, durable growth, and industry-leading profitability. Despite elevated AI-related capex, the company remains well-positioned to monetize new capabilities over the coming years.

• Forward PE Ratio: 19.69x vs. Industry Median 24.26x
• Expected EPS Growth: 12.79% vs. Industry Median 14.57%
• Expected Revenue Growth: 18.15% vs. Industry Median 14.85%
• Net Margins: 30.89% vs. Industry Median 8.85%
  

Options Trade
To express a bullish long-term view on META, consider buying a deep-in-the-money call option with a delta near 0.80 as a substitute for owning 100 shares of stock. The META Jun 18, 2026 490 Call, currently priced around $136.20, offers ample time for the anticipated trend reversal to unfold while providing leveraged upside should META reclaim prior highs and resume its longer-term uptrend. The maximum risk is capped at the $13,620 premium paid, while upside remains unlimited until expiry. The extended 209-day duration supports the substitute-stock approach, though it comes at a higher cost compared with the shorter-term strategies typically used in Daily Plays.

META – Daily

Trade Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 1 META Jun 18 $490 Call @ $136.20 Debit per Contract.

Total Risk: This trade has a max risk of $13,620 (1 Contract x $13,620) roughly 23% of buying 100 shares of META. We suggest using this longer dated call option as a more capital efficient way to capture upside using options. 

Counter-Trend Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bearish/Bearish

Relative Strength: 2/10

OptionsPlay Score: 77

Stop Loss: If META is below $490 (strike price) close the trade. 

View META 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 Thursday’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 META Trade