Closing Trade

• XYZ – 60% loss: Sell to Close 5 Contracts (or 100% of your Contracts) Aug 29 $75/$85 Call Vertical Spreads @ $1.57 Credit. DailyPlay Portfolio:  By Closing 5 Contracts, we will be collecting $785. We initially opened these 5 contracts on August 07 @ $3.93 Debit. Our loss, therefore, is $236 per contract.
• MU – 80% gain: Buy to Close 6 Contracts (or 100% of your Contracts) Aug 29 $109/$104 Put Vertical Spreads @ $0.40 Debit. DailyPlay Portfolio:  By Closing 6 Contracts, we will be paying $240. We initially opened these 6 contracts on July 24 @ $1.98 Credit. Our gain, therefore, is $948.

LOW Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Lowe’s Companies, Inc. (LOW) is entering earnings season with strong relative performance and a favorable valuation backdrop. The stock has recently cleared a key resistance level, reflecting renewed investor confidence ahead of its August 20th report. With management continuing to drive operational efficiency and market share gains, LOW appears well positioned to extend its current momentum into the fall. The combination of technical strength, fundamental resilience, and a modest valuation discount supports a bullish stance into earnings and beyond.

Technical Analysis
Lowe’s recent breakout above the $235 resistance level marks an important shift in sentiment, with the stock now trading above both short- and intermediate-term moving averages while challenging its 200-day moving average. The uptrend has been reinforced by a series of higher lows since May, and relative strength remains favorable compared to the S&P 500. The RSI near 65 reflects healthy bullish momentum without signaling overbought conditions. A strong earnings catalyst could accelerate this trend, creating a clear path toward our $265 upside target.

Fundamental Analysis
Lowe’s valuation remains modestly below industry norms while profitability metrics remain superior. Continued operational execution, paired with a disciplined cost structure, provides a cushion against potential macro headwinds. Earnings growth is in line with peers, and revenue growth, though modest, is supported by steady demand in home improvement and construction markets.

• Forward PE Ratio: 19.66x vs. Industry Median 23.35x
  
• Expected EPS Growth: 7.62% vs. Industry Median 7.18%
  
• Expected Revenue Growth: 2.75% vs. Industry Median 3.75%
  
• Net Margins: 8.22% vs. Industry Median 6.55%
  

Options Trade
Selling the LOW Sep 12, 2025 235/230 Put Vertical at $2.02 offers an attractive risk/reward profile for bullish traders expecting the stock to hold above the $235 breakout zone post-earnings. The trade risks $298 to capture a maximum profit of $202, representing a reward-to-risk ratio of 0.68, meaning there’s potential to earn $0.68 for every $1.00 at risk if Lowe’s remains above $235 at expiration, 32 days from now. This setup benefits from both time decay and the potential for volatility contraction following earnings, while targeting a defined, favorable payoff if LOW maintains or builds on recent strength.

LOW – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 6 LOW Sep 12 $235/$230 Put Vertical Spreads @ $2.02 Credit per Contract.

Total Risk: This trade has a max risk of $1,788 (6 Contracts x $298) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $298 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 5/10

OptionsPlay Score: 106

Stop Loss: @ $4.04 (100% loss to value of premium)

View LOW 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. 

View LOW Trade

DailyPlay Portfolio Review

Our Trades

GOOGL – 25 DTE

Bullish Debit Spread – Alphabet Inc. (GOOGL) – The position is profitable. The stock is trading above all major moving averages, with the 20-day MA providing short-term support. With sufficient time remaining until expiration, we plan to continue holding the trade.

GS – 11 DTE

Bullish Debit Spread – Goldman Sachs Group, Inc. (GS) – Strong bullish momentum last week pushed the position into profit. We implemented an adjustment during the week to lower overall risk.

MS – 18 DTE

Bullish Debit Spread – Morgan Stanley (MS) – The position is currently at a slight loss. We made an adjustment a few weeks ago to reduce overall risk, and with expiration drawing near, we will continue holding but will monitor it closely.

MU – 18 DTE

Bullish Credit Spread – Micron Technology, Inc. (MU) – The stock closed higher this week, turning the position profitable, and moved back above the 20- and 50-day moving averages. We plan to continue holding the trade but will monitor it closely to see if the bullish momentum persists.

PINS – 18 DTE

Bullish Call Spread – Pinterest, Inc. (PINS) – The stock fell sharply following the company’s earnings announcement. The position is down near its maximum loss, and since we did not have the opportunity to close at the 50% stop loss, we may allow the position to run its course.

SCHW – 158 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – We maintain a positive outlook, driven by solid company fundamentals and ongoing strength across SCHW and the broader financial sector. The company reported solid earnings, and the stock made a strong upside move following the announcement, but has since pulled back with the financial sector as a whole. We will stay the course for now.

XYZ – 18 DTE

Bullish Call Spread – Block, Inc. (XYZ) – The stock performed well initially but then dropped sharply following the company’s earnings announcement. The position is currently down, but we plan to hold for now.

Closing Trade

• FSLR – 33% gain: Sell to Close 3 Contracts (or 100% of your Contracts) Aug 15 $180/$195 Call Vertical Spreads @ $6.84 Credit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be collecting $2,052. We initially opened these 3 contracts on July 30 @ $5.13 Debit. Our gain, therefore, is $513.
• CRWD – 50% gain: Buy to Close 2 Contracts (or 100% of your Contracts) Aug 22 $450/$465 Call Vertical Spreads @ $2.70 Debit. DailyPlay Portfolio:  By Closing 2 Contracts, we will be paying $540. We initially opened these 2 contracts on Aug 06 @ $5.35 Credit. Our gain, therefore, is $530.

GS Bullish Trade Adjustment Signal

Investment Rationale

Adjustment Rationale:

Our bullish view on The Goldman Sachs Group, Inc. (GS) remains in place, with the stock holding above key moving averages after a strong rebound earlier this year. Following a solid push higher in late June, GS has been moving sideways near recent highs, showing healthy consolidation. Momentum indicators remain in a comfortable range, suggesting there’s still room for another leg higher without flashing overbought signals.

With a couple of weeks left until option expiration, rolling the short leg of the spread down within the same cycle for a net credit could help lock in gains and limit downside risk during this mild pullback. This keeps the trade aligned with the bullish outlook, though it would cap some upside if the stock breaks out strongly.

Adjustment Trade:

GS @ $719.74

Days to Expiration (DTE): 14

Buy to Close 1 GS Aug 22, 2025 755 Call @ $3.58

Sell to Open 1 GS Aug 22, 2025 730 Call @ $11.02

Mid: $7.44

Premium Received: $744 per spread or

$744 total adjustment in the cost basis for the position.

The total risk for the new position is $2,290 (original cost basis) minus $744 (net credit from the adjustment), resulting in a revised cost basis of $1,546.

Resulting Position:
Long 1 Aug 22, 2025 695 Call
Short 1 GS Aug 22, 2025 730 Call 
New Cost Basis and total risk of $1,546

GS – Daily

Trade Details

Strategy Details

Strategy: Rolling a Short Call option down in strike

Direction: Resulting in a new Bullish Debit Spread

Details: Buy to Close 1 GS Aug 22 $755 Calls @ $3.58 and Sell to Open 1 GS Aug 22 $730 Calls @ $11.02

Total Risk: The resulting position has a maximum risk of $1,546 (2,290-744), calculated as the initial cost basis of the spread purchased ($2,290) minus the premium received from the adjustment ($744)

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

Stop Loss: @ $7.73 (50% loss of premium)

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. 

XYZ Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Block Inc. appears poised for continued upside ahead of its earnings announcement after the close today, Thursday, August 7th. The stock has recently staged a strong recovery and is showing renewed leadership in the software sector, signaling increasing investor confidence. With a breakout from consolidation and improving sentiment, earnings could serve as a catalyst for a move toward the $85 price target. Option flows and technical strength suggest traders are positioning for a bullish reaction.

Technical Analysis
After breaking out of a multi-month consolidation and reclaiming its 200-day moving average, XYZ rallied to fill a key gap near $82 before pulling back in a controlled fashion. The retreat has paused near the 20-day moving average, now acting as short-term resistance and a key level to watch. Momentum remains constructive, RSI has reset to 57, signaling digestion of gains rather than a loss of trend strength. This pattern of breakout, gap-fill, and orderly pullback sets up a compelling continuation scenario toward $85, especially with earnings potentially serving as a bullish catalyst.

Fundamental Analysis
XYZ trades at a valuation discount despite growth metrics that significantly outpace industry norms, making it an attractive candidate for re-rating post-earnings. Strong margin efficiency and robust top-line momentum highlight the company’s ability to scale profitably.

• Forward PE Ratio: 16.27x vs. Industry Median 27.66x
• Expected EPS Growth: 23.90% vs. Industry Median 11.68%
• Expected Revenue Growth: 11.39% vs. Industry Median 9.38%
• Net Margins: 10.93% vs. Industry Median 8.59%

Options Trade
A bullish call vertical is appropriate ahead of the earnings event: Buy 1 XYZ Aug 29, 2025 75/85 Call Spread for $3.65. This defined-risk position costs $365 per spread and offers a max reward of $635, implying a 1.74:1 reward-to-risk ratio. The structure benefits from a bullish earnings reaction that propels XYZ toward or above the $85 target. With 23 days to expiration, the trade provides enough time for a post-earnings move to materialize while limiting capital at risk.

XYZ – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 5 XYZ Aug 29 $75/$85 Call Vertical Spreads @ $3.65 Debit per Contract.

Total Risk: This trade has a max risk of $1,825 (5 Contracts x $365) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $365 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 4/10

OptionsPlay Score: 105

Stop Loss: @ $1.83 (50% loss of premium)

View XYZ 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 XYZ Trade

CRWD Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
CrowdStrike Holdings (CRWD) is showing both technical and valuation pressures that point to a short-term bearish opportunity. Earnings are still several weeks away, scheduled for August 27, 2025, which allows for a trade targeting pre-earnings price compression. The stock has recently broken below key support and is demonstrating relative weakness versus the broader software sector. Given its elevated valuation and recent deterioration in price action, a limited-risk bearish options structure expiring before earnings offers an attractive risk/reward profile while avoiding the volatility and uncertainty typically surrounding CRWD’s results.

Technical Analysis
CRWD broke below its $480 support in July and has since retested that level as resistance, confirming a shift in trend momentum. The price has rolled over toward its 50-day and 200-day moving averages, with the 20-day moving average now sloping downward and acting as short-term resistance. The daily RSI near 36 suggests the stock is approaching oversold territory but still has room for further downside, particularly toward the $420 support zone. Volume trends indicate sustained selling pressure, reinforcing the bearish setup ahead of the earnings event.

Fundamental Analysis
From a valuation standpoint, CRWD remains significantly overextended compared to industry norms, leaving it vulnerable if sentiment weakens further. While the company boasts above-average revenue growth, ongoing net losses and negative margins limit the fundamental support that could justify such a premium. Combined with sector rotation away from high-multiple software names, this creates meaningful downside risk in the near term.

• Forward PE Ratio: 127.07x vs. Industry Median 27.66x
  
• Expected EPS Growth: 18.55% vs. Industry Median 11.68%
  
• Expected Revenue Growth: 21.97% vs. Industry Median 9.38%
  
• Net Margins: -4.17% vs. Industry Median 8.59%
  

Options Trade
To capitalize on the short-term bearish bias while controlling risk, consider the Aug 22, 2025, 450/465 bear call spread for a net credit of $5.45. This involves selling the 450 call and buying the 465 call, collecting $545 in premium with a maximum risk of $955. The expiration date is set before the earnings report, eliminating exposure to that event. The trade profits if CRWD finishes below $450 at expiration, aligning with the thesis of continued weakness toward the $420 target zone. The short strike is positioned above current resistance, offering a margin of safety, while the defined risk structure limits potential losses if the stock unexpectedly rebounds. This setup provides a balanced mix of probability and return on capital.

CRWD – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 2 CRWD Aug 22 $450/$465 Call Vertical Spreads @ $5.45 Credit per Contract.

Total Risk: This trade has a max risk of $1,910 (2 Contract x $955) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $955 to select the # contracts for your portfolio.

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

1M/6M Trends: Bearish/Neutral

Relative Strength: 5/10

OptionsPlay Score: 103

Stop Loss: @ $10.90 (100% loss to value of premium)

View CRWD 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 Tuesday’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 CRWD Trade

Closing Trade

• TGT – 71% loss: Sell to Close 2 Contracts (or 100% of your Contracts) Aug 15 $100 Calls @ $2.10 Credit. DailyPlay Portfolio:  By Closing 2 Contracts, we will be collecting $420. We initially opened these 2 contracts on July 02 @ $7.23 Debit. Our loss, therefore, is $513 per contract.
• NEM – 70% gain: Sell to Close 7 Contracts (or 100% of your Contracts) Aug 15 $60/$67 Call Vertical Spreads @ $4.77 Credit. DailyPlay Portfolio:  By Closing 7 Contracts, we will be collecting $3,339. We initially opened these 7 contracts on July 23 @ $2.80 Debit. Our gain, therefore, is $1,379.

PINS Bullish Opening Trade Signal

Investment Rationale

Investment Thesis:
Pinterest (PINS) is positioned for upside into its upcoming earnings report this Thursday, August 7th after the close, driven by a combination of improving user monetization, expanding margins, and tailwinds from AI-powered product innovation. While the stock has seen a steady recovery since April, investor expectations remain moderate relative to its long-term growth potential. With earnings risk skewed to the upside and fundamentals showing accelerating momentum, Pinterest represents an attractive short-term bullish setup into the print.

Technical Analysis:
PINS remains in a strong uptrend since its late-May breakout, with price action consistently supported by the 20-, 50-, and 200-day moving averages. Shallow pullbacks have been met with aggressive buying, creating a steady pattern of higher highs and higher lows. Momentum is robust, RSI sits at 68, just shy of overbought, confirming continued buying without immediate exhaustion. Technical indicators such as OBV and rising moving averages highlight strong accumulation and broad participation. A close above the key $40 resistance, especially post-earnings, could spark fresh momentum toward the all-time highs near $45, given the absence of major overhead supply and ongoing bullish signals.

Fundamental Analysis:
Pinterest’s underlying fundamentals reflect accelerating performance and margin expansion, which support a bullish thesis into earnings:

• Forward PE Ratio: 22.32x vs. Industry Median 20.85x
• Expected EPS Growth: 23.25% vs. Industry Median 12.45%
• Expected Revenue Growth: 13.94% vs. Industry Median 11.80%
• Net Margins: 50.41% vs. Industry Median 6.28%

While the company trades at a bit of a premium valuation, its superior revenue growth and margins justify the higher multiple, particularly as AI monetization and product innovation begin to materialize.

Options Trade:
A defined-risk bullish play can be established via the PINS Aug 29, 2025, 38/45 Call Vertical at a net debit of $2.48 ($248 per spread). The trade risks $248 to target a maximum reward of $452 if PINS closes at or above $45 at expiration. This vertical structure offers a favorable risk/reward profile of roughly 1.82:1 while lowering breakeven to $40.48, allowing participation in potential upside from earnings without the full premium outlay of buying calls outright. The August 29 expiry provides time for a post-earnings move to fully play out while minimizing theta decay ahead of the catalyst.

PINS – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 8 PINS Aug 29 $38/$45 Call Vertical Spreads @ $2.48 Debit per Contract.

Total Risk: This trade has a max risk of $1,984 (8 Contracts x $248) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $248 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 107

Stop Loss: @ $1.24 (50% loss of premium)

View PINS 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. 

View PINS Trade

DailyPlay Portfolio Review

Our Trades

FSLR – 11 DTE

Bullish Debit Spread – First Solar, Inc. (FSLR) – The stock gained bullish momentum following last week’s strong earnings report. We plan to maintain the position for now, but with limited time until expiration—given that it was designed as an earnings play—we are monitoring it closely. The trade is currently profitable, and we expect the upward trend to continue, though we’ll keep the position on a short leash.

GOOGL – 32 DTE

Bullish Debit Spread – Alphabet Inc. (GOOGL) – The position is currently down. However, the stock is trading above all major moving averages, with the 20-day MA providing short-term support. With sufficient time remaining until expiration, we plan to continue holding the trade.

GS – 18 DTE

Bullish Debit Spread – Goldman Sachs Group, Inc. (GS) – Despite a strong post-earnings rally, the position has recently moved into negative territory. With sufficient time remaining until expiration, we plan to hold and may explore an adjustment this week to reduce overall risk.

MS – 25 DTE

Bullish Debit Spread – Morgan Stanley (MS) – Morgan Stanley delivered a solid quarterly earnings report. However, the stock sold off afterward, and the position is showing a slight loss. We executed an adjustment last week to lower the overall risk, and with decent time remaining until expiration, along with the reduced risk from the adjustment, we plan to continue holding the position for now.

MU – 25 DTE

Bullish Credit Spread – Micron Technology, Inc. (MU) – The position is currently at a loss following a pullback from recent highs. The stock closed the week lower, breaking below the 50-day moving average, which had been acting as support. We plan to continue holding the trade but will monitor closely to see if the weakness persists.

NEM – 11 DTE

Bullish Debit Spread – Newmont Corporation (NEM) – The trade is currently showing a gain after the company’s earnings report pushed the stock to a new 52-week high. The stock pulled back this week following the strong post-earnings rally. We plan to continue holding the position.

SCHW – 165 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – We maintain a positive outlook, driven by solid company fundamentals and ongoing strength across SCHW and the broader financial sector. The company reported solid earnings, and the stock made a strong upside move following the announcement, but has since pulled back with the financial sector as a whole. We will stay the course for now.

TGT – 11 DTE

Bullish Long Call – Target Corporation (TGT) – The trade has faltered after initial progress. With the stock closing under the 100 support level and limited time remaining, we will consider exiting the position unless we see a positive move early in the week.

MS Bullish Trade Adjustment Signal

Investment Rationale

Adjustment Rationale:

Our bullish outlook on Morgan Stanley (MS) remains intact, as the stock continues to trade above key moving averages following a strong rebound from recent lows. After a strong breakout to the upside at the end of June, MS has entered a tight consolidation phase near its highs, reflecting constructive price action. The RSI remains neutral, leaving room for further upside without signaling overbought conditions.

With about a month until option expiration, we recommend rolling the short leg of the spread to a lower strike within the same cycle for a net credit. This adjustment aligns with the bullish thesis while helping to manage risk and reduce downside exposure amid a modest pullback. It does, however, cap upside potential if MS breaks out decisively.

Adjustment Trade

MS @ $142.46

Days to Expiration (DTE): 28

Buy to Close 2 MS Aug 29, 2025 160 Calls @ $0.12

Sell to Open 2 MS Aug 29, 2025 150 Calls @ $1.19

Mid $1.07

Premium Received: $1.07 net credit

or $214 for the adjustment trade

MS – Daily

Trade Details

Strategy Details

Strategy: Rolling a Short Call option down in strike

Direction: Resulting in a new Bullish Debit Spread

Details: Buy to Close 2 MS Aug 29 $160 Calls @ $0.12 and Sell to Open 2 MS Aug 29 $150 Calls @ $1.19

Total Risk: The resulting position has a maximum risk of $1,162 (1,376-214), calculated as the initial cost basis of the spread purchased ($1,162) minus the premium received from the adjustment ($214)

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 7/10

Stop Loss: @ $2.91 (50% loss of premium)

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. 

SCHW Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Charles Schwab Corp. (SCHW) presents a compelling bullish opportunity as macroeconomic tailwinds and firm-specific catalysts align to support further upside. The recent steepening of the yield curve directly enhances Schwab’s core business model—deploying client cash into longer-duration securities—which materially boosts net interest income. Additionally, Schwab’s lean cost base and scalable operations provide strong leverage to rising revenues. These dynamics, paired with growing investor risk appetite and sector leadership in capital markets, set the stage for continued outperformance into year-end and beyond.

Technical Analysis
The Charles Schwab Corporation (SCHW) broke out decisively above its multi-month consolidation, clearing the $94 resistance area with robust upward momentum. Presently, shares are positioned above the 20-, 50-, and 200-day moving averages, reinforcing a powerful trend across timeframes. The RSI is elevated at 75.2, indicating persistent buying pressure. While breakout volume remains steady rather than expanding, there is limited overhead resistance, pointing to further upside potential. The $108 area serves as the next technical objective, coinciding with a key Fibonacci extension and a psychological milestone.

Fundamental Analysis
Schwab trades at a noticeable valuation discount to peers, despite superior growth and profitability metrics that point to a structural edge in the brokerage and asset management landscape. The firm’s business model benefits disproportionately from rising interest rates and strong client asset flows, both of which are supportive heading into 2026.

• Forward PE Ratio: 22.42x vs. Industry Median 25.30x
• Expected EPS Growth: 22.51% vs. Industry Median 11.83%
• Expected Revenue Growth: 11.32% vs. Industry Median 7.62%
• Net Margins: 33.68% vs. Industry Median 21.10%

Options Trade
To position for further upside in SCHW, consider buying the SCHW Jan 16, 2026 87.5 Call for $14.80. This LEAPS call provides long-dated exposure to Schwab’s upside potential, with break-even at $102.30, just above current resistance targets and consistent with the $108 upside scenario. The strategy risks $1,480 per contract with unlimited reward potential beyond breakeven. This trade offers a defined-risk, leveraged expression of a bullish view with ample time for the thesis to play out amid favorable macro and company-specific drivers.

SCHW – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 1 SCHW Jan 16 $87.50 Call @ $14.80 Debit per Contract.

Total Risk: This trade has a max risk of $1,480 (1 Contract x $1,480) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,480 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 83

Stop Loss: @ $7.40 (50% loss of premium)

View SCHW 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 SCHW Trade

Closing Trade

• TSLA – 91% loss: Sell to Close 1 Contract (or 100% of your Contracts) Aug 08 $295/$270 Put Vertical Spreads @ $1.43 Credit. DailyPlay Portfolio:  By Closing 1 Contract, we will be collecting $143. We adjusted the short put on July 18 reducing our cost basis to $1,539 Debit. Our loss, therefore, is $1,396.
• SCHW – 59% gain: Sell to Close 1 Contract (or 100% of your Contracts) Dec 19 $75 Call @ $24.15 Credit. DailyPlay Portfolio:  By Closing 1 Contract, we will be collecting $2,415. We initially opened this contract on May 13 @ $15.18 Debit. Our gain, therefore, is $897.

FSLR Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
First Solar, Inc. (FSLR) offers an attractive risk-reward setup ahead of its upcoming earnings report on July 31st. As a key player in the solar industry, FSLR is well-positioned to benefit from policy support, clean energy tailwinds, and margin expansion opportunities in utility-scale solar deployments. Investor sentiment appears to be improving following a prolonged period of consolidation, and the stock is showing early signs of technical reacceleration. With a valuation discount and strong earnings/revenue momentum relative to peers, FSLR presents a compelling near-term bullish opportunity, particularly into a catalyst event that could drive further upside.

Technical Analysis
First Solar’s current technical indicators suggest that bullish momentum is building ahead of the company’s earnings report this Thursday. The stock’s ability to remain above its 20-day, 50-day, and 200-day moving averages underscores a strong upward trend. This multi-timeframe alignment reflects a solid price structure and reinforces the prevailing bullish sentiment. Notably, the 20-day moving average has recently crossed above the 200-day, and the 50-day is on the verge of doing the same. The RSI, currently near 60, suggests there is still room for momentum to build without entering overbought territory. If First Solar delivers strong earnings, it could drive a continued rally, potentially pushing the stock above the $195 level and toward the $210 area last seen at the end of 2024.

Fundamental Analysis
FSLR’s valuation and growth metrics suggest it remains undervalued relative to industry peers, despite superior operating performance:

• Forward PE Ratio: 12.20x vs. Industry Median 29.73x
  
• Expected EPS Growth: 31.05% vs. Industry Median 17.13%
  
• Expected Revenue Growth: 18.02% vs. Industry Median 7.71%
  
• Net Margins: 29.72% vs. Industry Median 6.69%
  

The company’s net margins are particularly impressive, exceeding the industry median by over 23 percentage points—highlighting First Solar’s strong operational efficiency and profitability in a highly competitive sector.

Options Trade
The proposed trade is a bull call vertical spread: Buy to Open 1 FSLR Aug 15, 2025 180/195 Call Vertical for a net debit of $5.95, or $595.00 per spread. This structure risks $595 to target a potential $905 reward if FSLR trades at or above $195 by expiration. The strike selection captures a breakout through current resistance levels, while the short call caps gains modestly in exchange for reduced capital outlay. With 17 days to expiry and earnings serving as a near-term catalyst, this setup balances defined risk with strong directional leverage.

FSLR – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 3 FSLR Aug 15 $180/$195 Call Vertical Spreads @ $5.95 Debit per Contract.

Total Risk: This trade has a max risk of $1,785 (3 Contracts x $595) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $595 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 101

Stop Loss: @ $2.98 (50% loss of premium)

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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 Tuesday’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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