DailyPlay – Opening Trade (V) Closing Trades (AMGN, PEP) – February 25, 2025

Closing Trades

• AMGN– 88% gain: Sell to Close 1 Contract (or 100% of your Contracts) April 17 $275 Call @ $38.03 Credit. DailyPlay Portfolio: By closing this Contract, we will receive $3,803. We initially opening this contract on Feb 2 @ $20.23 Debit. Our gain on this trade is therefore $1,780.

• PEP– 79% gain: Buy to Close 5 Contracts (or 100% of your Contracts) March 28 $140/$135 Put Vertical Spreads @ $0.23 Debit. DailyPlay Portfolio: By closing all 5 Contracts, we will pay $115. We initially opened these 5 Contracts on Feb 13 @ $1.10 Credit. Our gain on this trade is therefore $435.

V Bullish Opening Trade Signal

Investment Rationale

Visa Inc. (V) has maintained strong upside momentum since breaking out of its trading range in mid-January, outperforming the S&P 500 and presenting an opportunity for continued gains.

Fundamentally, V is moderately undervalued and trades at a premium relative to its peers. However, with growth in line with its peers and industry-leading profitability, it still represents significant upside potential. V has a forward P/E ratio of 30.85x compared to the industry average of 17.45x. Its expected EPS growth is 12.74%, slightly below the industry average of 13.19%, while its expected revenue growth of 10.92% outpaces the industry average of 8.37%. V also maintains a strong net margin of 54.27%, significantly higher than the industry average of 20.83%.  

Visa’s latest earnings at the end of January highlight strong growth and innovation driving future gains. The company posted a 10% increase in net revenue and a 14% rise in EPS, driven by robust international expansion and the rapid adoption of real-time payments. Payments volume grew 9%, with US volume up 7% and international volume up 11%. Additionally, Visa announced a stock buyback in Q1, reinforcing its commitment to shareholder value.  

Despite macroeconomic challenges, Visa’s strong financials and continued investment in growth opportunities position it as a compelling long-term investment.

V – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 2 Contracts V April 4 $350/$335 Put Vertical Spreads @ $4.21 Credit per Contract.

Total Risk: This trade has a max risk of $2,158 (2 Contracts x $1,079) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,079 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue its bullish trajectory.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 82

Stop Loss: @ $8.42 (100% loss to value of premium)

View V 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 Monday ‘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. 

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