• AMZN – 95% gain: Sell to Close 2 Contracts (or 100% of your Contracts) Jan 17 $205/$230 Call Vertical Spreads  @ $20.38 Credit. DailyPlay Portfolio:  By Closing both Contracts, we will receive $4,076. We initially opened these 2 Contracts on Nov 13 @ $10.44 Debit. Our gain, therefore, is  $1,988.
• CSGP – 117% loss: Buy to Close 5 Contracts (or 100% of your Contracts) Jan 17 $75/$70 Put Vertical Spreads  @ $1.63 Debit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will pay $815. We initially opened these 5 Contracts on Dec 4 @ $0.75 Credit. Our loss, therefore, is $88 per Contract. 

AAPL Bearish Opening Trade Signal

Investment Rationale

Apple Inc. (AAPL) has recently entered overbought territory on both daily and weekly timeframes, exhibiting signs of exhaustion that suggest an increased likelihood of a significant selloff.

Currently, AAPL trades at a forward price-to-earnings (P/E) ratio of 33.34x, a substantial premium compared to the industry average of 17.89x. However, this valuation is not supported by its growth metrics. AAPL’s expected earnings-per-share (EPS) growth of 11.49% falls below the industry average of 13.93%, and its anticipated revenue growth of 6.89% is only marginally higher than the industry average of 6.50%. Although AAPL’s net margins of 23.97% far exceed the industry average of 8.40%, the recent decline in these margins heightens downside risks.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 2 AAPL Jan 17, 2025 $260/$270 Call Vertical Spreads @ $1.19 Credit per Contract.

Total Risk: This trade has a max risk of $1,762 (2 Contracts x $881) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $881 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bearish trade on a stock that is expected to pull back from recent highs to lower support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 218

Stop Loss: @ $2.38 (100% loss to value of premium received)

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 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 AAPL Trade

ANET Bullish Opening Trade Signal

Investment Rationale

Arista Networks (ANET) recently broke above its $105 resistance level, signaling strong momentum and potential for further gains toward our $115 target. Despite trading at a forward PE ratio of 44x, higher than peers, Arista justifies this premium with impressive net margins of 40.29%, far exceeding the industry average of 8.23%. Additionally, EPS and revenue growth projections of 17.54% and 18.29% surpass the industry averages of 14.13% and 6.5%. Trading at a 38% discount to peers, Arista presents significant upside potential given its superior profitability and growth.

ANET – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 13 ANET Jan 3, 2025 $105/$110 Call Vertical Spreads @ $1.50 Debit per Contract.

Total Risk: This trade has a max risk of $1,950 (13 Contracts x $150) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $150 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 5/10

OptionsPlay Score: 134

Stop Loss: @ $0.75 (50% loss of premium)

View ANET 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 ANET Trade

GOOGL Bullish Trade Adjustment

Investment Rationale

Alphabet Inc. (GOOGL) recently broke out above its $170 resistance level, and we maintain an upside target near its most recent high in the $190 area. This breakout provides a strong risk/reward opportunity for adding bullish exposure. Based on this outlook, we purchased a long call option on December 6th for the Daily Play portfolio when the stock was at 172.64.

Long 1 GOOGL Mar 21, 2025 $160 Call @ $18.38 Debit per Contract.

This position is profitable, and we believe the time is right to sell a near-term call to offset some of the time premium paid for the long call with the March 21st expiration.

Sell to Open 1 GOOGL Dec 27, 2024 $185 Call @ $0.78 Credit per Contract

Trade Details

Strategy Details

Strategy: Adjustment of a bullish Call

Direction: Resulting in a new bullish Call Diagonal Spread

Details: Sell to Open 1 GOOGL Dec 27, 2024 $185 Call @ $0.78 Credit per Contract

Total Risk: This trade has a max risk of $1,760 (1 Contract x $1,760) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $1,760 to select the # contracts for your portfolio.

Original Position:

• Long 1 GOOGL Mar 21, 2025 $160 Call @ $18.38 Debit per Contract.

Resulting Position:

• Long 1 GOOGL Mar 21, 2025 $160 Call @ $18.38 Debit per Contract
• Short 1 GOOGL Dec 27, 2024 $185 Call @ $0.78 Credit per Contract
• The net Debit for the new position is $17.60

Adjusting the Trade

Use the following details to Adjust the GOOGL trade on your trading platform.

PLEASE NOTE that these prices are based on Monday’s closing prices.

DailyPlay Portfolio Review

Our Trades

AMZN – 39 DTE

Bullish Debit Spread – Amazon.com Inc. (AMZN) recently demonstrated strong upward momentum, rebounding from a resistance level near 207 and approaching the short strike of our call vertical spread. This aligns with our bullish outlook, so we will maintain the current position.

CSGP – 39 DTE

Bullish Credit Spread – We just established this position and plan to stay the course.

DIS – 39 DTE

Bullish Calls – We have a small gain currently and plan to stay the course for now.

DXCM – 39 DTE

Bullish Debit Spread –  We just established this position and plan to stay the course.

GOOGL – 102 DTE

Bullish Calls – We just established this position and plan to stay the course.

NVDA – 18 DTE

Bullish Call Diagonal Spread –  We recently rolled the short call leg of our NVDA diagonal position up and out in time, generating a small net credit. The long call leg is performing well, and the new higher strike price of the short call option provides additional upside potential for the long call if the bullish momentum continues.

QQQ – 39 DTE

Bullish Calls – The QQQ has demonstrated recent upside momentum, and the trade is now profitable. With sufficient time remaining until expiration, we will maintain the position.

SHOP – 39 DTE

Bullish Debit Spread – The position is profitable, and the plan is to stay the course for now.

XLF – 39 DTE

Bullish Calls – We have a small profit in our long call position in the financial sector and see more potential upside. Therefore, we will stay the course for now.

GOOGL Bullish Opening Trade Signal

Investment Rationale

Alphabet Inc. (GOOGL) recently broke out above its $170 resistance level and pulled back to this support level, providing a strong risk/reward opportunity for adding bullish exposure.

From a fundamentals perspective, GOOGL is fair-valued, trading at a 5% discount relative to its peers. Despite this, it is expected to grow faster than its competitors and is far more profitable, suggesting substantial upside potential. GOOGL has a forward PE ratio of 19.43x compared to the industry average of 20.54x. Its expected EPS growth is 19.17%, outpacing the industry average of 11.69%. Additionally, its expected revenue growth is 12.05%, compared to the industry average of 8.18%, and its net margins are significantly higher at 27.74% versus the industry average of 13.82%.

GOOGL – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 1 GOOGL Mar 21, 2025 $160 Call @ $19.05 Debit per Contract.

Total Risk: This trade has a max risk of $1,905 (1 Contract x $1,905) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $1,905 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Neutral/Bullish

Relative Strength: 3/10

OptionsPlay Score: 82

Stop Loss: @ $9.53 (50% loss of premium)

View GOOGL 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 GOOGL Trade

Closing Trades

• LULU – 196% gain: Sell to Close 3 Contracts (or 100% of your Contracts) Dec 6 $302.50/$315 Call Vertical Spreads @ $10.23 Credit. DailyPlay Portfolio:  By Closing all 3 Contracts, we will receive $3,069  We initially opened these 3 Contracts on November 21 @ $3.45 Debit. Our gain on this trade, therefore, is $2,034 which is 2% gain on our total portfolio.

• INTC – 52% loss: Sell to Close 4 Contracts (or 100% of your Contracts) Jan 17, 2025 $21 Calls @ $2.09 Credit. DailyPlay Portfolio:  By Closing all 4 Contracts, we will receive $836  We initially opened these 4 Contracts on November 12 @ $4.35 Debit. Our loss on this trade, therefore, is $904.

NVDA Bullish Rolling Trade

Investment Rationale

On November 26th, 2024 with the stock at $136.02, we executed a Bullish Call Diagonal Spread on NVDA. Today we will adjust this position by closing one leg and opening another leg of this Call Diagonal Spread. Below is the original trade breakdown with the individual legs listed.

• Net Debit of $16.79 
• Buy to Open 1 Contract Jan 17, 2025 $124 Call @ $18.60
• Sell to Open 1 Contract Dec 13, 2024 $148 Call @ $1.81

Trade Details

Strategy Details

Strategy: Adjustment of a bullish Call Diagonal Spread

Direction: Resulting in a new bullish Call Diagonal Spread

Details: Buy to Close 1 Contract Dec 13 $148 Call and Sell to Open 1 Contract Dec 27 $152.50 Call @ a $0.34 net Credit, or $34 per 1×1 roll ($0.34 x 100). The total net Credit received for the single Contract is the $34. This roll establishes a new Call Calendar position in NVDA.

Original Position:

• Buy to Open 1 Contract Jan 17, 2025 $124 Call @ $18.60
• Sell to Open 1 Contract Dec 13, 2024 $148 Call @ $1.81

Resulting Position:

• Long 1 Contract Jan 17, 2025  $124 Call
• Short 1 Contract Dec 27, 2024 $152.50 Call

Adjusting the Trade

Use the following details to Adjust the NVDA trade on your trading platform.

PLEASE NOTE that these prices are based on Wednesday’s closing prices.

CSGP Bullish Opening Trade Signal

Investment Rationale

CoStar Group, Inc. (CSGP) recently broke out above its trading range with strong momentum, outperforming the S&P 500 and signaling potential for further upside toward our $90 target.

CoStar appears modestly undervalued, trading at a premium relative to its peers. However, this valuation is justified by its faster-than-expected growth and superior profitability metrics compared to the industry average. Specifically, CoStar has a forward price-to-earnings (PE) ratio of 72.15x versus the industry average of 29.27x. Its expected earnings per share (EPS) growth stands at an impressive 80.50%, compared to 7.32% for its peers, while expected revenue growth is 13.11% versus the industry average of 2.98%. Additionally, CoStar’s net margins of 6.58% significantly outpace the 2.68% seen across the industry.

CSGP – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 5 CSGP Jan 17 $75/$70 Put Vertical Spreads @ $0.75 Credit per Contract.

Total Risk: This trade has a max risk of $2,125 (5 Contract x $425) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $425 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 5/10

OptionsPlay Score: 101

Stop Loss: @ $1.50 (100% loss to value of premium received)

View CSGP 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 CSGP Trade

DXCM Bullish Opening Trade Signal

Investment Rationale

DexCom, Inc. (DXCM) recently broke out above its trading range with strong momentum, outperforming the S&P 500, and signaling potential upside to our $95 target.  

The company has modestly undervalued fundamentals, trading at a forward price-to-earnings (PE) ratio of 38.31x, above the industry average of 24.87x. This premium is supported by robust growth metrics, including an expected earnings per share (EPS) growth of 23.17%, compared to the industry average of 8.70%. Additionally, DexCom’s projected revenue growth of 13.80% and net margins of 17.22% outperform peer averages of 6.34% and 14.13%, respectively, reflecting its strong competitive positioning.

DXCM – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 3 DXCM Jan 17 $75/$92.50 Vertical Spreads @ $6.52 Debit per Contract.

Total Risk: This trade has a max risk of $1,956 (3 Contract x $652) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $652 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Neutral

Relative Strength: 2/10

OptionsPlay Score: 107

Stop Loss: @ $3.26 (50% loss of premium paid)

View DXCM 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 DXCM Trade

Closing Trade

• AZN – 90% gain: Sell to Close 8 Contracts (or 100% of your Contracts) Dec 20 $62/$69 Call Vertical Spreads @ $5.16 Credit. DailyPlay Portfolio:  By Closing all 8 Contracts, we will receive $4,128  We initially opened these 8 Contracts on November 20 @ $2.71 Debit. Our gain on this trade, therefore, is $1,960 which is almost 2% gain on our total portfolio.

DailyPlay Portfolio Review

Our Trades

AMZN – 46 DTE

Bullish Debit Spread – Since Amazon.com Inc. (AMZN) reported earnings, the stock has experienced wild price swings but has remained range-bound. It is currently at a resistance level around 207. We remain bullish and will continue monitoring the position closely.

AZN – 18 DTE

Bullish Debit Spread – We are closing this position today for a profit.

DIS – 46 DTE

Bullish Debit Spread – We just established this position and plan to stay the course.

INTC – 46 DTE

Bullish Debit Spread – We are currently down on the trade, but with ample time remaining until expiration, we will stay the course. The position still presents an opportunity for further upside toward our $30 target.

LULU – 4 DTE

Bullish Debit Spread – The stock has reached our upside target and is trading five points above our short call strike at the 320 level, giving us a decent profit on the trade. However, the company is expected to announce earnings on Thursday, December 5th, after the close. The implied volatility of our short option has surged, and now theta is our best friend. We will monitor the position closely, allowing theta decay to help with the position, and will most likely close it before the earnings announcement to avoid the risks the announcement may bring.

NVDA – 11 DTE

Bullish Call Diagonal Spread –  We just established this position and plan to stay the course.

QQQ – 46 DTE

Bullish Calls – We are currently down on the trade, but with ample time remaining until expiration, we will stay the course.

SHOP – 46 DTE

Bullish Debit Spread – The position is profitable, and the plan is to stay the course for now.

XLF – 46 DTE

Bullish Calls – We have a profit in our long call position in the financial sector and see more potential upside. Therefore, we will stay the course for now.