💰 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

View Trade in OptionsPlay

• 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

View Trade in OptionsPlay

• 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

View Trade in OptionsPlay

• 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).

💰 The Income Generators (High Probability, Cash Flow)

• CVS: Credit Put Spread capitalizing on its “back to basics” strategy to stabilize the business and focus on growth in 2026.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• HD: Debit Call Spread positioning for a housing market recovery thesis ahead of the spring selling season.

🛡️ The Portfolio Protectors (Hedges & Bearish Bets)

• XLF: Bearish Put Spread hedging against regulatory headwinds as the White House targets credit card interest rates.

1. CVS ($79.33) – The Healthcare Value Play

View Trade in OptionsPlay

• The Trade: Sell to Open the CVS Feb 13, 2026 79/73 Put Vertical @ $2.13 Credit.
  • (Legs: Sell 79 Put, Buy 73 Put)
• Trade Metrics: POP: 59.25% | Collect $213.00 per contract vs. a Max Risk of $387.00 (1.8:1).
• The Why: The Investor Day (Dec 2025) provided the credibility Wall Street needed: 2026 is a growth year, not a reset year.
• The Technicals: The stock is in a Neutral Trend (1M) but retains a Bullish Trend (6M) with a Relative Strength of 8/10. It is currently testing Resistance at $85.15, while major Support sits at $74.55.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Feb 11, which may require active management.
  • Stop Loss: Buy back the spread at $4.26 (100% of credit received).
  • Take Profit: Buy back the spread at $1.07 (50% of max gain).

2. HD ($375.95) – Building a Base

View Trade in OptionsPlay

• The Trade: Buy to Open the HD Mar 20, 2026 375/420 Call Vertical @ $14.83 Debit.
  • (Legs: Buy 375 Call, Sell 420 Call)
• Trade Metrics: POP: 36.04% | Pay $1,483.00 per contract vs. a Max Reward of $3,017.00 (2.0:1).
• The Why: Despite recent rate volatility, Home Depot remains the primary beneficiary of a potential housing turnover recovery as we approach the critical spring season.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 5/10. It is currently testing Resistance at $410.39, while major Support sits at $320.39.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Feb 24, which may require active management.
  • Stop Loss: Sell the spread at $7.42 (50% loss on premium).
  • Take Profit: Sell the spread at $25.95 (75% gain on premium).

3. XLF ($54.15) – Financial Headwinds

View Trade in OptionsPlay

• The Trade: Buy to Open the XLF Jan 30, 2026 55/52 Put Vertical @ $0.94 Debit.
  • (Legs: Buy 55 Put, Sell 52 Put)
• Trade Metrics: POP: 48.14% | Pay $94.00 per contract vs. a Max Reward of $206.00 (2.2:1).
• The Why: New regulatory pressure from the White House regarding credit card interest rate caps presents a significant earnings headwind for the banking sector components.
• The Technicals: The stock is in a Mildly Bearish Trend (1M) but retains a Bullish Trend (6M) with a Relative Strength of 3/10. It is currently testing Resistance at $56.52, while major Support sits at $49.38.
• Management:
  • Stop Loss: Sell the spread at $0.47 (50% loss on premium).
  • Take Profit: Sell the spread at $1.65 (75% gain on premium).

💰 The Income Generators (High Probability, Cash Flow)

• RKLB: Call Credit Spread capitalizing on extreme overbought conditions to generate income against resistance.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• CBOE: Debit Call Spread betting on sustained short dated trading volumes driving the exchange’s next leg higher.

🛡️ The Portfolio Protectors (Hedges & Bearish Bets)

• DG: Covered Call generating elevated premiums to hedge against potential consumer spending softness.

1. RKLB ($86.58) – Fading the Parabola

View Trade in OptionsPlay

• The Trade: Sell to Open the RKLB Feb 13, 2026 87/110 Call Vertical @ $6.77 Credit.
  • (Legs: Sell $87 Call, Buy $110 Call)
• Trade Metrics: POP: 67.54% | Collect $677.00 per contract vs. a Max Risk of $1,623.00 (2.4:1).
• The Why: After a massive run-up, Rocket Lab is hitting technical resistance; we are selling expensive call premiums to profit from a potential consolidation or pullback.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 10/10. It is currently testing Resistance at $89.87, while major Support sits at $80.71.
• Management:
  • Stop Loss: Buy back the spread at $13.54 (Loss of 100% of credit received).
  • Take Profit: Buy back the spread at $3.39 (50% of max gain).

2. CBOE ($266.77) – The Volatility Play

View Trade in OptionsPlay

• The Trade: Buy to Open the CBOE Feb 27, 2026 260/280 Call Vertical @ $8.80 Debit.
  • (Legs: Buy 260 Call, Sell 280 Call)
• Trade Metrics: POP: 45.65% | Pay $880.00 per contract vs. a Max Reward of $1,120.00 (1.3:1).
• The Why: With market volatility remaining a key theme for 2026, Cboe Global Markets is positioned to beat expectations as option volumes continue to expand.
• 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 $266.77, while major Support sits at $185.13.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Feb 06, which may require active management.
  • Stop Loss: Sell the spread at $4.40 (50% loss on premium).
  • Take Profit: Sell the spread at $15.40 (75% gain on premium).

3. DG ($151.25) – Defensive Income

View Trade in OptionsPlay

• The Trade: Sell to Open Feb 6, 2026 162.5 Covered Call @ $1.66 Credit.
• Trade Metrics: POW: 80.12% | Collect $165.50 per contract (18.21% Annualized Yield or 1.11% in 24 Days).
• The Why: We are utilizing high implied volatility to generate income on Dollar General, creating a buffer against technical resistance and macro consumer headwinds.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 9/10. It is currently testing Resistance at $152.09, while major Support sits at $146.00.
• 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 $3.32 (Loss of 100% of credit received).
  • Take Profit: Buy back the call at $0.83 (50% of max gain).

💰 The Income Generators (High Probability, Cash Flow)

• SCHW: Credit Put Spread capitalizing on stabilizing deposit flows and expanding net interest margins.
• CMG: Short Put betting on operational efficiency and automation to defend margins despite consumer softness.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• C: Debit Call Spread positioning for a restructuring-driven turnaround as valuation discounts narrow.

1. SCHW ($101.90) – The Deposit Stabilization Play

View Trade in OptionsPlay

• The Trade: Sell to Open the SCHW Feb 20, 2026 100/97.5 Put Vertical @ $0.92 Credit.
• Trade Metrics: POP: 60.54% | Collect $92.00 per contract vs. a Max Risk of $158.00 (1.7:1).
• The Why: Analysts expect 2026 to bring a normalization of cash sorting headwinds, allowing Schwab’s net interest margin to expand as client assets hit record highs.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 7/10. It is currently testing Resistance at $102.80, while major Support sits at $99.30.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Jan 21, which may require active management.
  • Stop Loss: Buy back the spread at $1.84 (100% of credit received).
  • Take Profit: Buy back the spread at $0.46 (50% of max gain).

2. C ($117.70) – The Restructuring Turnaround

View Trade in OptionsPlay

• The Trade: Buy to Open the C Feb 20, 2026 115/130 Call Vertical @ $5.29 Debit.
• Trade Metrics: POP: 39.78% | Pay $529.00 per contract vs. a Max Reward of $971.00 (1.8:1).
• The Why: Citigroup’s ongoing restructuring and focus on high-return services are expected to unlock value, with shares currently trading at a significant discount to tangible book value.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a strong Relative Strength of 9/10. It is currently testing Resistance at $124, while major Support sits at $105.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Jan 14, which may require active management.
  • Stop Loss: Sell the spread at $2.65 (50% loss on premium).
  • Take Profit: Sell the spread at $9.26 (75% gain on premium).

3. CMG ($40.34) – Automated Efficiency

View Trade in OptionsPlay

• The Trade: Sell 1 Feb 6, 2026 39 Put @ $1.63 Credit.
• Trade Metrics: POW: 56.24% | Collect $163.00 per contract (91.42% Annualized Yield or 4.36% in 24 Days).
• The Why: Despite softer transaction trends, Chipotle’s investment in automation (Autocado) and menu innovation positions it to defend margins better than fast-casual peers.
• The Technicals: The stock is in a Bullish Trend (1M) but a Neutral Trend (6M) with a weak Relative Strength of 2/10. It is currently testing Resistance at $40.50, while major Support sits at $38.00.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Feb 03, which may require active management.
  • Note: These management rules are optional. You may choose to hold to expiration if you are comfortable with the obligation to buy shares at the strike price.
  • Stop Loss: Buy back the put at $3.26 (100% of credit received).
  • Take Profit: Buy back the put at $0.82 (50% of max gain).

💰 The Income Generators (High Probability, Cash Flow)

• UNP: Credit Put Spread capitalizing on the “efficiency engine” holding support as rail volumes stabilize.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• META: Debit Call Spread positioning for an earnings breakout as AI ad tools drive higher ROI for advertisers.

🛡️ The Portfolio Protectors (Hedges & Bearish Bets)

• BA: Covered Call generating income to hedge against a potential technical reversal after an extended bullish run.

1. UNP ($228.44) – The Efficiency Play

View Trade in OptionsPlay

• The Trade: Sell to Open the UNP Feb 20, 2026 225/220 Put Vertical @ $1.65 Credit.
• Trade Metrics: POP: 61.52% | Collect $165.00 per contract vs. a Max Risk of $335.00 (2.0:1).
• The Why: We are betting on Union Pacific’s operational efficiency to maintain a valuation floor around the $225 support level ahead of earnings.
• The Technicals: The stock is in a Mildly Bearish Trend (1M) but retains a Bullish Trend (6M) with a Relative Strength of 3/10. It is currently testing Resistance at $236, while major Support sits at $226.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Jan 27, which may require active management.
  • Stop Loss: Buy back the spread at $3.30 (100% of max gain).
  • Take Profit: Buy back the spread at $0.83 (50% of max gain).

2. META ($653.06) – AI Ad Breakout

View Trade in OptionsPlay

• The Trade: Buy to Open the META Feb 20, 2026 650/715 Call Vertical @ $23.65 Debit.
• Trade Metrics: POP: 37.70% | Pay $2,365.00 per contract vs. a Max Reward of $4,135.00 (1.7:1).
• The Why: Analysts expect Meta’s AI-driven ad targeting improvements to fuel a strong Q4 earnings beat, justifying a push toward new highs.
• The Technicals: The stock is in a Neutral Trend (1M & 6M) with a Relative Strength of 3/10. It is currently testing Resistance at $681, while major Support sits at $539.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Jan 28, which may require active management.
  • Stop Loss: Sell the spread at $11.83 (50% loss on premium).
  • Take Profit: Sell the spread at $41.39 (75% gain on premium).

3. BA ($234.53) – Hedging the Altitude

View Trade in OptionsPlay

• The Trade: Sell to Open Feb 6, 2026 255 Covered Call @ $1.92 Credit.
• Trade Metrics: POW: 85.18% | Collect $192.00 per contract (12.23% Annualized Yield or 0.83% in 26 Days).
• The Why: With the stock showing signs of a potential technical reversal after a strong run, we are selling calls to buffer downside risk while capturing high premiums.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 7/10. It is currently testing Resistance at $243, while major Support sits at $220.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Jan 27, which may require active 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 $3.84 (100% of max gain).
  • Take Profit: Buy back the call at $0.96 (50% of max gain).

💰 The Income Generators (High Probability, Cash Flow)

• UNH: Credit Put Spread utilizing the “transition year” turnaround thesis and stabilizing medical costs.
• ZM: Credit Put Spread betting on the “Platform 2.0” AI pivot improving enterprise retention rates.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• XOM: Debit Call Spread riding the energy breakout driven by production growth in the Permian and Guyana.

🛡️ The Portfolio Protectors (Hedges & Bearish Bets)

• UBER: Covered Call generating income against valuation headwinds and regulatory uncertainty.

1. UNH ($346.56) – The Defensive Turnaround

View Trade in OptionsPlay

• The Trade: Sell to Open the UNH Feb 20, 2026 340/330 Put Vertical @ $4.00 Credit.
• Trade Metrics: POP: 57.16% | Collect $400.00 per contract vs. a Max Risk of $600.00 (1.5:1).
• The Why: Analysts view 2026 as a pivotal transition year for UnitedHealth, expecting operational improvements and stabilizing medical cost trends to drive a recovery.
• 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 $382, while major Support sits at $252.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Jan 27, which may require active management.
  • Stop Loss: Buy back the spread at $8.00 (100% of max gain).
  • Take Profit: Buy back the spread at $2.00 (50% of max gain).

2. ZM ($85.65) – AI-Driven Retention

View Trade in OptionsPlay

• The Trade: Sell to Open the ZM Feb 20, 2026 85/80 Put Vertical @ $1.68 Credit.
• Trade Metrics: POP: 59.45% | Collect $168.00 per contract vs. a Max Risk of $332.00 (2.0:1).
• The Why: Zoom’s aggressive integration of “AI Companion” features is successfully driving enterprise renewal rates, supporting a bullish floor despite macro noise.
• The Technicals: The stock is in a Mildly Bearish Trend (1M) but retains a Bullish Trend (6M) with a Relative Strength of 7/10. It is currently testing Resistance at $91, while major Support sits at $74.
• Management:
  • Stop Loss: Buy back the spread at $3.36 (100% of max gain).
  • Take Profit: Buy back the spread at $0.84 (50% of max gain).

3. XOM ($122.91) – Energy Supercycle Breakout

View Trade in OptionsPlay

• The Trade: Buy to Open the XOM Mar 20, 2026 120/135 Call Vertical @ $5.32 Debit.
• Trade Metrics: POP: 41.89% | Pay $532.00 per contract vs. a Max Reward of $968.00 (1.8:1).
• The Why: XOM is positioned as a top energy compounder for 2026, with production ramping in Guyana and the Permian Basin driving earnings power higher.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 7/10. It is currently testing Resistance at $126, while major Support sits at $122.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Jan 30, which may require active management.
  • Stop Loss: Sell the spread at $2.66 (50% loss on premium).
  • Take Profit: Sell the spread at $9.31 (75% gain on premium).

4. UBER ($87.57) – Hedging the Downside

View Trade in OptionsPlay

• The Trade: Sell 1 Jan 30, 2026 93 Covered Call @ $0.97 Credit.
• Trade Metrics: POW: 78.78% | Collect $97.00 per contract (20.30% Annualized Yield or 1.12% in 22 Days).
• The Why: While long-term growth remains, we are using this covered call to generate income as the stock faces near-term consolidation and regulatory headwinds.
• The Technicals: The stock is in a Bullish Trend (1M) but a Neutral Trend (6M) with a weak Relative Strength of 3/10. It is currently testing Resistance at $102, while major Support sits at $82.
• 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 $1.94 (100% of max gain).

💰 The Income Generators (High Probability, Cash Flow)

• NVDA: Short Put capitalizing on the insatiable demand for Blackwell chips providing a strong floor.
• CVX: Credit Put Spread capitalizing on energy price stability and a strong dividend yield.

🚀 The Growth Seekers (Higher Risk, Max Reward)

• MP: Debit Call Spread betting on the strategic decoupling of rare earth supply chains from China.

🛡️ The Portfolio Protectors (Hedges & Bearish Bets)

• NET: Bearish Put Spread providing a hedge against valuation compression in high-multiple software stocks.

1. CVX ($155.20) – Energy Stability Play

View Trade in OptionsPlay

• The Trade: Sell to Open the CVX Feb 20, 2026 155/150 Put Vertical @ $2.20 Credit.
• Trade Metrics: POP: 57.00% | Collect $220.00 per contract vs. a Max Risk of $280.00 (Risk/Reward Ratio: 1.3:1).
• The Why: Analysts see Chevron’s “fortress” balance sheet and disciplined capex plans for 2026 providing a strong valuation floor despite oil price volatility.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 6/10. It is currently testing Resistance at $160, while major Support sits at $142.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Jan 30, which is prior to expiration. This may require active management or closing the trade early.
  • Stop Loss: Buy back the spread at $4.40 (100% of max gain).
  • Take Profit: Buy back the spread at $1.10 (50% of max gain).

2. MP ($62.50) – The Strategic Supply Chain Bet

View Trade in OptionsPlay

• The Trade: Buy to Open the MP Mar 20, 2026 60/80 Call Vertical @ $5.83 Debit.
• Trade Metrics: POP: 37.03% | Pay $583.00 per contract vs. a Max Reward of $1,417.00 (Risk/Reward Ratio: 2.5 to 1).
• The Why: MP Materials is positioned as a top conviction pick for 2026 as it scales magnet production, capitalizing on Western efforts to secure rare earth independence.
• The Technicals: The stock is in a confirmed Bullish Trend (1M & 6M) with a Relative Strength of 10/10. It is currently testing Resistance at $70, while major Support sits at $56.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Feb 19, which is prior to expiration. This may require active management or closing the trade early.
  • Stop Loss: Sell the spread at $2.92 (50% loss on premium).
  • Take Profit: Sell the spread at $10.20 (75% gain on premium).

3. NVDA ($189.11) – The AI Infrastructure Floor

View Trade in OptionsPlay

• The Trade: Sell to Open the NVDA Feb 6, 2026 185 Put @ $5.78 Credit.
• Trade Metrics: POW: 56.21% | Collect $578.00 per contract (47.14% Annualized Yield or 3.23% in 30 Days).
• The Why: Insatiable demand for Blackwell chips and a dominant position in the 2026 AI data center build-out continues to support a bullish outlook.
• 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 $197, while major Support sits at $161.
• Management:
  • Note: These management rules are optional. You may choose to hold to expiration if you are comfortable with the obligation to buy shares at the strike price.
  • Stop Loss: Buy back the put at $11.56 (100% of max gain).
  • Take Profit: Buy back the put at $2.89 (50% of max gain).

4. NET ($202.81) – Valuation Reality Check

View Trade in OptionsPlay

• The Trade: Buy to Open the NET Feb 20, 2026 200/165 Put Vertical @ $10.99 Debit.
• Trade Metrics: POP: 40.47% | Pay $1,099.00 per contract vs. a Max Reward of $2,401.00 (Risk/Reward Ratio: 2 to 1).
• The Why: With shares trading at high multiples relative to peers, analysts warn that valuation compression is a risk if growth decelerates even slightly.
• The Technicals: The stock is in a Mildly Bullish Trend (1M) but Neutral Trend (6M) with a Relative Strength of 4/10. It is currently testing Resistance at $233, while major Support sits at $183.
• Management:
  • ⚠️ Warning: Earnings is scheduled for Feb 05, which may require active management.
  • Stop Loss: Sell the spread at $5.50 (50% loss on premium).
  • Take Profit: Sell the spread at $19.23 (75% gain on premium).

Closing Trade

• AKAM – 50% gain: Sell to Close 6 Contracts (or 100% of your Contracts) Jan 16 $85/$95 Call Vertical Spreads @ $4.25 Credit. DailyPlay Portfolio:  By Closing 6 Contracts, we will be collecting $2,550. We initially opened these 6 contracts on December 09 @ $2.83 Debit. Our gain, therefore, is $852.
• NET – 19% loss: Buy to Close 3 Contracts (or 100% of your Contracts) Jan 23 $200/$210 Call Vertical Spreads @ $3.70 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $1,110. We initially opened these 3 contracts on December 19 @ $3.12 Credit. Our loss, therefore, is $58 per contract.

SPOT Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
Spotify Technology (SPOT) presents an attractive bearish setup as the stock struggles to sustain upside momentum following a counter-trend rally within a broader downtrend. After a strong advance earlier in the year, price action has shifted decisively, with recent rebounds failing to alter the prevailing bearish structure. Within the OptionsPlay platform, this price behavior has triggered a Bearish Trend Following alert, highlighting a favorable risk/reward window to position for renewed downside as valuation, momentum, and market structure begin to realign lower.

Technical Analysis
From a technical perspective, Spotify Technology (SPOT) remains firmly positioned within a longer-term bearish trend that developed following its mid-2025 peak near $750. The sharp rejection at that level established a clear lower high and initiated a sustained decline characterized by a series of lower highs and lower lows. Price has since rolled over decisively and continues to trade well below all major moving averages. The bearish structure was further confirmed by a death cross in early December 2025, as the 50-day moving average crossed below the 200-day. With trend alignment firmly negative, downside risk remains elevated, and the $510 area stands out as a logical downside target, aligning with prior lows and channel support.

Fundamental Analysis
While Spotify’s growth profile remains compelling, the stock continues to trade at a premium that leaves little room for execution risk, particularly in a risk-off tape. Net margins remain only modestly above peers, limiting valuation support if growth expectations cool.

• Forward PE Ratio: 39.79x vs. Industry Median 25.14x
• Expected EPS Growth: 42.57% vs. Industry Median 10.28%
• Expected Revenue Growth: 16.73% vs. Industry Median 8.47%
• Net Margins: 8.41% vs. Industry Median 7.25%

Options Trade
To express a bearish, risk-defined view, consider selling the SPOT Feb 6, 2026 $620/$635 call vertical for a credit of approximately $5.52. This structure offers a defined reward-to-risk ratio of roughly 0.58:1, with the premium collected equating to about 37% of the $15-wide spread. Maximum profit of $5.52 is achieved if SPOT remains below $620 at expiration, while maximum risk is capped at $9.48 should the stock reclaim and hold above $635. Notably, this expiration occurs ahead of Spotify’s expected earnings report in the second week of February, reducing exposure to earnings-driven volatility while maintaining bearish positioning.

SPOT – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 2 SPOT Feb 06 $620/$635 Call Vertical Spreads @ $5.52 Credit per Contract.

Total Risk: This trade has a max risk of $1,896 (2 Contracts x $948) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $948 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: Mildly Bullish/Bearish

Relative Strength: 2/10

OptionsPlay Score: 113

Stop Loss: @ $11.04 (100% loss to value of premium)

View SPOT 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 SPOT Trade

Closing Trade

• FDX – 63% gain: Buy to Close 3 Contracts (or 100% of your Contracts) Jan 30 $280/$270 Put Vertical Spreads @ $1.45 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $435. We initially opened these 3 contracts on December 17 @ $3.88 Credit. Our gain, therefore, is $729.

FDX Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
We closed a bullish credit spread to lock in gains ahead of the company’s mid-December earnings report, then initiated a new bullish credit spread in FDX. The company subsequently delivered a beat on both revenue and EPS, upside momentum continues to strengthen, and valuation remains attractive. Our current bullish credit spread in FDX is profitable, and the plan is to close the position, realize gains, and reallocate the proceeds into another bullish options strategy in FDX, following the same blueprint used in the previous trades.

Options Trade
We are selling the FDX Feb 13, 2026 290/275 put vertical for a net credit of approximately $4.72. This bullish credit spread allows us to define risk while positioning for FDX to remain above the 290 level through expiration. The trade offers a maximum reward of $4.72 against a maximum risk of $10.28, resulting in a risk/reward ratio of approximately 2.2:1 (risk to reward). We are collecting about 31.5% of the spread width in premium, providing an attractive probability-weighted setup that benefits from time decay while maintaining clearly defined downside exposure aligned with our bullish thesis.

FDX – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 1 FDX Feb 13 $290/$275 Put Vertical Spreads @ $4.72 Credit per Contract.

Total Risk: This trade has a max risk of $1,028 (1 Contract x $1,028) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,028 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: 89

Stop Loss: @ $9.44 (100% loss to value of premium)

View FDX 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 Friday’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 FDX Trade