Closing Trade

• INTU – 102% gain: Sell to Close 1 Contract (or 100% of your Contracts) June 13 $665/$715 Call Vertical Spreads @ $39.30 Credit. DailyPlay Portfolio:  By Closing this Contract, we will receive $3,930. We initially opened this contract on May 16 @ $19.50 Debit. Our gain, therefore, is $1,980.

DailyPlay Portfolio Review

Our Trades

AAPL – 52 DTE

Bearish Debit Spread – Apple Inc. (AAPL) – We recently entered this position, and the latest headlines about Apple have added some downside pressure. The trade is currently profitable, and we plan to maintain it for now.

AMAT – 31 DTE

The underlying fundamentals in AMAT remain solid. There has been general weakness recently in the semiconductor sector. Despite being down, we’re holding steady.

INTU – 17 DTE

We are closing the position today.

SCHW – 206 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – Our outlook remains positive, supported by strong company fundamentals and continued strength in both SCHW and the broader financial sector.

SPY – 3 DTE

Bearish Debit Spread – SPDR S&P 500 ETF (SPY) – The position is currently down. With only a few days left in the contracts, we’ll need to see bearish momentum build early in the week to justify staying in the position.

TTWO – 10 DTE

Bearish Debit Spread – Take-Two Interactive Software, Inc. (TTWO) – The company’s recent earnings release led to weakness in the stock. We are in a profitable position and intend to stay the course for now, but expiration is approaching.

ZM – 17 DTE

Bullish Debit Spread – Zoom Communications Inc. (ZM) – Overall, Zoom’s earnings last week were solid, exceeding expectations with improved guidance. Despite beating on the top and bottom line, the stock moved lower, and our position is currently down. We’ll need to see bullish momentum build early in the week to justify holding the trade.

SPY Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
While the longer-term uptrend in the S&P 500 remains intact, recent price action in SPX suggests a loss of short-term momentum that could lead to a tactical pullback. The index has fully recovered from the recent tariff-driven correction, but its advance stalled after reaching a new high of 5,963.60 on May 19. Since then, a 2% retreat to 5,842.01 by May 22 has emerged, signaling potential exhaustion. With elevated valuations and signs of softening economic data, the risk of a near-term retracement is increasing as the market digests recent gains.

Technical Analysis
The SPY, which is the ETF that tracks the S&P 500 index, has rallied above its 20-day (around $584.42), 50-day (around $569.03), and 200-day (around $569.07) moving averages. Price action has flattened near a recently established resistance level, and the recent slip from the highs aligns with weakening breadth and potential bearish divergence in momentum indicators. A decisive move below these moving averages could accelerate a move lower toward the $560 support range. This technical picture suggests a potential short-term pause or pullback within the broader uptrend.

Fundamental Analysis
Fundamental risks are skewed to the downside as equity valuations remain stretched and macroeconomic uncertainties mount. While earnings season provided a temporary lift, underlying metrics are beginning to deteriorate, and forward expectations may not fully reflect emerging risks. As we reach the tail end of quarterly earnings, most Wall Street forecasts place the S&P 500 forward PE ratio around 21x, above the five-year average of approximately 19.5x:

• SPX Forward PE Ratio: 21.1x vs. Five-Year Average 19.5x

Additionally, higher credit card delinquencies, and unresolved supply chain risks related to China pose further downside catalysts. Even if geopolitical and tariff issues resolve quickly, supply chain normalization lags could lead to temporary shocks and margin compression across sectors.

Options Trade
To position for a short-term pullback while defining risk, consider buying the SPY May 30, 2025 570/560 bear put vertical spread for $1.15. This trade involves buying the 570 put and selling the 560 put, resulting in a $115 debit per spread with a maximum profit potential of $885. The setup provides a favorable risk/reward ratio of over 7.7:1 and benefits from a move toward the $560 area of support. With only eight days to expiration, this is a high-conviction, short-dated play on a tactical decline, leveraging short-term weakness without over-committing capital.

SPY – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 18 SPY May 30 $570/$560 Put Vertical Spreads @ $1.15 Debit per Contract.

Total Risk: This trade has a max risk of $2,070 (18 Contracts x $115) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $115 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bearish trade on a stock that is expected to continue lower off a recent area of resistance.

1M/6M Trends: Bullish/Bullish

Relative Strength: 6/10

OptionsPlay Score: 27

Stop Loss: @ $0.58 (50% loss of premium)

View SPY 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 SPY Trade

AAPL Bearish Opening Trade Signal

Investment Rationale

Apple Inc. (AAPL) is beginning to show technical and valuation vulnerabilities that make it an attractive candidate for a bearish trend-following setup. The stock has struggled to regain its prior uptrend and now faces macro headwinds, decelerating growth, and a challenging valuation profile. While the company remains fundamentally strong, its premium pricing and lack of near-term growth catalysts create a scenario where downside exposure is warranted, especially if broader market weakness persists.

AAPL has recently broken down from a multi-month consolidation range and failed to reclaim its 200-day moving average. The stock’s rally into the $210–$215 zone is losing momentum, stalling just below key resistance from its downward-sloping 50-day and 200-day moving averages. With price struggling to sustain upward momentum, the technical setup suggests a likely continuation lower, targeting the $170–$175 support zone.

AAPL’s valuation remains stretched relative to its growth profile, reflecting investor optimism that may not be supported by fundamentals over the next several quarters. While profitability remains high, the company’s growth metrics are lagging behind sector averages, calling into question the justification for its elevated PE ratio.

• Forward PE Ratio: 29.47x vs. Industry Median 19.42x
• Expected EPS Growth: 8.30% vs. Industry Median 11.04%
• Expected Revenue Growth: 5.31% vs. Industry Median 5.76%
• Net Margins: 24.30% vs. Industry Median 8.78%

Buy the AAPL Jul 18, 2025 $205/$180 Put Vertical for $7.50 to express a bearish view with defined risk. This spread profits if AAPL trades below $197.50 at expiration, with a breakeven near recent support. The slightly in-the-money structure boosts delta exposure while capping risk, delivering a 2.3:1 reward-to-risk ratio if AAPL reaches the $170 downside target.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 3 AAPL July 18 $205/$180 Put Vertical Spreads @ $7.50 Debit per Contract.

Total Risk: This trade has a max risk of $2,250 (3 Contracts x $750) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $750 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue lower off a recent area of resistance.

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 147

Stop Loss: @ $3.75 (50% loss of premium)

View AAPL 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 AAPL Trade

AMAT Bullish Opening Trade Signal

Investment Rationale

Applied Materials (AMAT) offers a compelling bullish setup driven by structural demand tailwinds in the semiconductor equipment space and strong capital return policies. The company’s March announcement of a $10 billion share repurchase authorization and a 15% dividend increase underscores management’s confidence in long-term cash flow visibility and balance sheet strength. Although shares sold off sharply following the Q2 2025 earnings report, despite an EPS beat of $2.39 vs. $2.31 expected, this reaction appears driven by short-term concerns over China-related headwinds rather than a deterioration in core fundamentals. The post-earnings weakness presents an opportunity to enter a high-quality name at a relative discount.

Shares of AMAT have recently broken out above the 50-day and 20-day moving averages, signaling renewed buying interest after a multi-month downtrend. The stock is currently consolidating just under the 200-day moving average (~$174), which now serves as the next key resistance level. Price action has built a higher low formation since the April bottom, suggesting improving trend structure. A close above $174 would mark a bullish continuation signal, while the $159.75 area represents nearby support from short-term moving averages and the April breakout zone.

Despite slower-than-average top-line growth, AMAT remains fundamentally attractive due to strong profitability and relative valuation support:

• Forward PE Ratio: 17.80x vs. Industry Median 24.65x
• Expected EPS Growth: 8.43% vs. Industry Median 16.51%
• Expected Revenue Growth: 6.26% vs. Industry Median 10.46%
• Net Margins: 24.06% vs. Industry Median 10.43%

Set up a neutral-to-bullish trade on AMAT with a June 27, 2025 expiration, using a bull call spread alongside selling a $165 put and buying a $155 put. With 37 days remaining, this trade profits if AMAT remains above $165, leveraging a 0.58 risk-reward ratio. It’s an effective way to benefit from a stable price or a rebound to the 200-day moving average after an earnings-related drop.

AMAT – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 AMAT June 27 $165/$155 Put Vertical Spreads @ $3.70 Credit per Contract.

Total Risk: This trade has a max risk of $1,890 (3 Contract x $630) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $630 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/Mildly Bullish

Relative Strength: 7/10

OptionsPlay Score: 91

Stop Loss: @ $7.40 (100% loss to value of premium)

View AMAT 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 AMAT Trade

Closing Trade

• SPY – 87% loss: Buy to Close 2 Contracts (or 100% of your Contracts) June 20 $570/$595 Call Vertical Spreads @$18.83 Debit. DailyPlay Portfolio: By Closing both Contracts, we will be paying $3,766. We initially opened these 2 Contracts on May 5 @ $10.04 Credit. Our loss on this trade, therefore, is $879 per Contract.

ZM Bullish Trade Adjustment Signal

Investment Rationale

We continue our bullish outlook on ZM. We currently hold the ZM Jun 13, 2025, 80 Strike Call in the Daily Play Portfolio. Despite trading at a notable discount to its software peers, Zoom stands out for its operational efficiency and disciplined cost management. ZM has recently broken out of a multi-month consolidation range. The stock is now trading above both its 50-day and 200-day moving averages, reinforcing the bullish momentum. With the upcoming earnings release on Wednesday, May 21, after the close, we have decided to adjust the position into a Bull Call Vertical spread by selling the ZM Jun 13, 2025, 90 Strike Call.

Position after the adjustment – Bull Call Vertical Spread:

• Long 3 ZM Jun 13, 2025, $80 Strike Call
• Short 3 ZM Jun 13, 2025, $90 Strike Call

ZM – Daily

Trade Details

Strategy Details

Strategy: Selling a Call – Creating a Long Call Vertical Spread

Direction: Resulting trade is a Bullish Debit Spread

Details: Sell to Open 3 Contracts ZM June 13 $90 Calls @ $1.44 Credit per Contract.

Total Risk: This trade has a maximum risk of $1,377 ($1,809 – 432), calculated as the initial cost basis of the three contracts purchased ($1,809) minus the premium received from the three contracts sold ($432).

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: 8/10

View ZM Trade

Resulting 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 ZM Trade

DailyPlay Portfolio Review

Our Trades

INTU – 25 DTE

Bullish Debit Spread – Intuit Inc. (INTU) – We recently established this position ahead of the company’s earnings report on Thursday, May 22, after market close. We are slightly profitable on the position and intend to stay the course for now.

SCHW – 214 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – Our outlook remains positive, supported by strong company fundamentals and continued strength in both SCHW and the broader financial sector.

SPY – 32 DTE

Bearish Credit Spread – SPDR S&P 500 ETF (SPY) – The position is currently down, and while there is still ample time until expiration, we’ll need to see bearish momentum build early in the week to justify staying in the position.

TTWO – 18 DTE

Bearish Debit Spread – Take-Two Interactive Software, Inc. (TTWO) – The company’s  recent earnings release led to weakness in the stock. We are in a profitable position and intend to stay the course for now.

ZM – 25 DTE

Bullish Long Call – Zoom Communications Inc. (ZM) – Zoom picked up bullish momentum this week, and the position is currently profitable. We’ll continue to hold ahead of the earnings report scheduled for Wednesday, May 21, after market close.

Closing Trade

• WMT – 50% gain: Buy to Close 7 Contract (or 100% of your Contracts) June 20 $100/$105 Call Vertical Spreads @ $0.98 Debit. DailyPlay Portfolio:  By Closing this Contract, we will be paying $686. We initially opened this trade on May 6 @ $1.97 Credit. Our gain, therefore, is $693.

INTU Bullish Opening Trade Signal

Investment Rationale

Intuit Inc. (INTU) has shown recent upside momentum heading into its upcoming earnings report on Thursday, May 22, after the close.The company continues to benefit from long-term structural growth drivers across financial software, tax services, and AI-driven small business tools. With a strong brand moat and recurring revenue model, Intuit is well positioned to outperform in the current environment. Additionally, the software sector remains relatively insulated from global trade tensions and tariff headlines, which have weighed on more industrial or hardware-exposed segments. This macro positioning adds stability to the bullish setup forming into earnings.

INTU has broken out above key resistance near $640, clearing both its 200-day and 50-day moving averages with strong follow-through. The move is supported by a bullish crossover in short-term momentum indicators and an uptick in volume, showing confidence in the move. Relative strength has improved meaningfully, as the stock now outperforms the broader S&P 500 on a one-month and six-month basis. With the breakout now holding above prior range highs, the next technical resistance level sits near the $700 level.

Intuit’s fundamentals remain strong, with metrics that justify its valuation premium. The company trades modestly above the industry on a forward earnings basis, but growth and margin performance support the multiple. Management continues to execute well across both the consumer and small business segments, and investor focus is likely to be on updated AI initiatives and guidance on the earnings call.

• Forward PE Ratio: 29.46x vs. Industry Median 26.17x
• Expected EPS Growth: 14.31% vs. Industry Median 12.54%
• Expected Revenue Growth: 12.34% vs. Industry Median 9.67%
• Net Margins: 17.69% vs. Industry Median 10.19%

The INTU Jun 13, 2025 $665/$715 bull call spread sets up as an attractive, limited-risk play into earnings. With 29 days to expiration and a favorable 2:1 reward-to-risk profile, the trade is positioned to do well if earnings extend the stock’s bullish breakout.

INTU – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 1 INTU June 13 $665/$715 Call Vertical Spreads @ $16.25 Debit per Contract.

Total Risk: This trade has a max risk of $1,625 (1 Contract x $1,625) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,625 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: 111

Stop Loss: @ $8.13 (50% loss of premium)

View INTU 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 INTU Trade

Closing Trade

• NVDA – 27% gain: Sell to Close 1 Contract (or 100% of your Contracts) Sept19/May 23 $90/$125 Call Diagonal Spreads @ $36.92 Credit. DailyPlay Portfolio:  By Closing this Contract, we will receive $3,692. We initially opened on April 15 @ $29.90 Debit and then the 2nd leg on May 7 @ $0.91 Credit, giving us a net Debit of $28.99. Our gain, therefore, is $793.

TTWO Bearish Opening Trade Signal

Investment Rationale

Take-Two Interactive (TTWO) has staged an impressive rally into earnings, fueled by anticipation around its upcoming release pipeline and broader market enthusiasm for AI-driven productivity tailwinds. However, the stock now appears priced for perfection. With valuations stretched relative to peers and no EPS growth expected in the near term, the risk skew heading into earnings favors the downside. The company’s delay of key title releases or muted forward guidance could catalyze a near-term re-rating lower, particularly if results disappoint in a market that has grown increasingly unforgiving toward underwhelming tech narratives.

TTWO has surged to new 52-week highs above $229, breaking out from a multi-month consolidation range. The stock is extended well above its 20-day and 50-day moving averages, reflecting strong short-term momentum. However, the sharp rally has been accompanied by declining volume, and recent candles show signs of exhaustion with upper wicks and lower closes. With little support until the $220 breakout level, a bearish reaction to earnings could trigger a swift retracement toward the 50-day moving average near $214.

TTWO trades at a premium valuation while facing near-term headwinds from a lack of earnings growth and elevated expectations around future content. Any delay in marquee title launches or commentary around margin compression could weigh on sentiment, especially given the industry’s competitive backdrop.

• Forward PE Ratio: 33.10x vs. Industry Median 19.6x
• Expected EPS Growth: 0% vs. Industry Median 18.30%
• Expected Revenue Growth: 19.19% vs. Industry Median 14.33%
• Net Margins: -67.07% vs. Industry Median 6.36%

The TTWO Jun 6, 2025 230/220 Put Vertical spread is initiated by buying the 230 put and selling the 220 put, with 23 days remaining until expiration. The trade is entered for a net debit, which represents the maximum risk. With a reward-to-risk ratio of approximately 1.41:1, the setup offers an attractive profile, where the potential gain outweighs the defined risk. With Take-Two Interactive set to announce earnings after the close, the strategy presents a defined-risk bearish play ahead of a key event.

TTWO – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 2 TTWO June 6 $230/$220 Put Vertical Spreads @ $4.15 Debit per Contract.

Total Risk: This trade has a max risk of $830 (2 Contract x $415) based on a hypothetical $100k portfolio risking 1% on this trade. We suggest risking only 1% of the value of your portfolio and divide it by $415 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 111

Stop Loss: @ $2.08 (50% loss of premium)

View TTWO 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 TTWO Trade

ZM Bullish Opening Trade Signal

Investment Rationale

Zoom Communications (ZM) is entering a period of renewed investor interest ahead of its upcoming earnings release on Wednesday, May 21st, after the close. After a prolonged consolidation, the stock has reasserted strength, breaking above key resistance levels and reclaiming long-term moving averages. With sentiment turning bullish and volatility likely to build into earnings, ZM offers an attractive setup for a directional play. This trade targets a continuation of momentum and potentially elevated premiums into the event, capitalizing on a favorable technical and fundamental backdrop.

ZM has recently broken out of a multi-month consolidation range, clearing resistance near the $78–$80 zone with conviction. The stock is now trading above both its 50-day and 200-day moving averages, reinforcing the bullish momentum. Volume has been strong, reinforcing the breakout’s momentum.  With relative strength registering 9/10 and outperforming the S&P 500, the path of least resistance appears higher, with the next technical target near the $88 level, representing a retest of prior highs from earlier this year.

Despite modest growth forecasts, Zoom trades at a compelling valuation discount relative to its software peers, supported by best-in-class profitability. These fundamentals enhance the risk/reward for a bullish setup into earnings.

• Forward PE Ratio: 15.02x vs. Industry Median 26.17x
• Expected EPS Growth: 1.18% vs. Industry Median 12.54%
• Expected Revenue Growth: 3.27% vs. Industry Median 9.67%
• Net Margins: 21.65% vs. Industry Median 10.19%

Initiate a long call position by Buying 1 ZM Jun 13, 2025, 80 Call, with 31 days to expiration. The trade is slightly in-the-money, offering high delta exposure to further upside while also benefiting from potential IV expansion ahead of earnings. The max risk is limited to the premium paid, while reward is theoretically unlimited. If the stock moves higher and delivers a solid gain prior to May 21st, we will exit the position. If momentum stalls, we may sell an OTM call to form a bull call spread, reducing exposure while retaining upside potential into earnings.

ZM – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 3 ZM June 13 $80 Calls @ $5.98 Debit per Contract.

Total Risk: This trade has a max risk of $1,794 (3 Contract x $598) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $598 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: 8/10

OptionsPlay Score: 80

Stop Loss: @ $2.99 (50% loss of premium)

View ZM 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 ZM Trade

Closing Trade

• PINS – 94% gain: Sell to Close 11 Contracts (or 100% of your Contracts) June 20 $27/$32 Call Vertical Spreads @ $3.96 Credit. DailyPlay Portfolio:  By Closing all 11 Contracts, we will receive $4,356. We initially opened these 11 Contracts on May 8 @ $2.04 Debit. Our gain, therefore, is $2,112.

SCHW Bullish Opening Trade Signal

Investment Rationale

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 materially enhances Schwab’s net interest income potential, particularly benefiting its core business of investing client cash in longer-duration securities. In tandem, Schwab’s operational leverage and efficient cost structure position it to capitalize on incremental top-line growth. With the stock breaking out of its multi-month range and strong relative strength vs. the S&P 500, the backdrop is favorable for a continued rally toward the $95 target level.

On Monday, May 12th, SCHW reached an intraday high of $87.00, surpassing its previous closing peak of $85.43 from January 2023 before ending the session at $85.37. The stock now trades firmly above its 20-, 50-, and 200-day moving averages, with strong volume trends and positive momentum indicators confirming the breakout. The price action signals a bullish continuation pattern, with sustained closes above prior resistance reinforcing the potential for further upside.

Charles Schwab’s valuation and profitability metrics offer an attractive setup relative to its peers. Its fundamental strength is reinforced by a steepening yield curve that supports enhanced interest income dynamics:

• Forward PE Ratio: 19.63x vs. Industry Median 23.24x
• Expected EPS Growth: 22.33% vs. Industry Median 11.89%
• Expected Revenue Growth: 11.19% vs. Industry Median 7.96%
• Net Margins: 31.71% vs. Industry Median 23.42%

Purchase SCHW December 19, 2025, 75 Call option. This long-dated call, with a delta of approximately 0.80, offers leveraged exposure and tracks the stock closely if momentum continues. The December expiration allows time for the fundamentals to mature, potentially capturing gains fueled by strong earnings and macro tailwinds. Buying the call, rather than shares, limits downside risk while maintaining unlimited upside potential until the option’s expiration date, particularly if SCHW advances toward or beyond the $95 technical target.

SCHW – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 1 SCHW Dec 19 $75 Call @ $14.90 Debit per Contract.

Total Risk: This trade has a max risk of $1,490 (1 Contract x $1,490) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,490 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: 10/10

OptionsPlay Score: 82

Stop Loss: @ $7.45 (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 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 SCHW Trade