DIS Bullish Opening Trade Signal

Investment Rationale

The Walt Disney Company (DIS) recently filled its $114 gap, reaching our prior target, and is now targeting its 52-week high near $125. DIS has turned around its revenue and EPS growth, achieving record TTM revenues and net income.

Since breaking out above $96 and completing a bottoming formation, Disney has demonstrated a solid recovery. While it trades at a slight premium to the industry, its growth and profitability are outpacing its peers in the space.

DIS – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 6 DIS Jan 17 $115/$125 Vertical Spreads @ $3.10 Debit per Contract.

Total Risk: This trade has a max risk of $1,860 (6 Contract x $310) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $310 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 115

Stop Loss: @ $1.55 (50% loss of premium paid)

View DIS 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 DIS Trade

Closing Trade

• ADBE – 41% gain: Sell to Close 2 Contracts (or 100% of your Contracts) Dec 20 $475/$495 Call Vertical Spreads @ $13.90 Credit. DailyPlay Portfolio: By Closing both Contracts, we will receive $2,780.  We initially opened these 2 Contracts on November 5 @ $9.85 Debit. Our gain on this trade, therefore, is $810.

NVDA Bullish Opening Trade Signal

Investment Rationale

NVIDIA Corp (NVDA) recently broke out above its $135 resistance level and has since pulled back to a support level, presenting an attractive risk/reward setup for bullish positions.

While trading at a premium with a forward P/E ratio of 33.26x versus the industry average of 19.76x, NVIDIA boasts superior metrics, including expected EPS growth of 63.85%, revenue growth of 56.04%, and net margins of 55.69%. These figures underscore its significant upside potential despite the higher valuation.

NVDA – Daily

Trade Details

Strategy Details

Strategy: Long Call Diagonal Spread

Direction: Bullish Call Diagonal Spread

Details: Buy to Open 1 NVDA Dec 13/Jan 17 $124/$148 Call Diagonal Spread @ $15.38 Debit per Contract.

Total Risk: This trade has a max risk of $1,538 (1 Contract x $1,538) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $1,538 to select the # contracts for your portfolio.

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

1M/6M Trends: Mildly Bearish/ Bullish

Relative Strength: 7/10

OptionsPlay Score: 106

Stop Loss: @ $7.69 (50% loss of premium paid)

View NVDA 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 NVDA Trade

DailyPlay Portfolio Review

Our Trades

ADBE – 25 DTE

Bullish Debit Spread – Adobe Inc. (ADBE) remains volatile, recently bouncing strongly off the $500 support level. The $525 resistance has been a struggle. The trade is currently profitable. With an expiration beyond the December earnings report, we have the option to close, hold, or potentially roll up the position.

ADI – 4 DTE

Bearish Debit Spread – This week, we bought to close the 202.50 Nov 22nd option for a few cents and rolled into a short Nov 29th put at the same strike. This adjustment captured a significant amount of implied volatility premium in the Nov 29th put ahead of earnings, positioning us in a long put vertical spread for the announcement on Tuesday, November 26th. Watch closely and be ready to close on the morning of the announcement.

AMZN – 53 DTE

Bullish Debit Spread – Amazon.com Inc. (AMZN) recently reported strong earnings. Although the stock has experienced a pullback, we remain bullish and will continue holding the position as the holiday shopping season gets underway.

AZN – 25 DTE

Bullish Debit Spread – AZN stock is building momentum to the upside, gaining 4% last week. We will stay the course.

INTC – 53 DTE

Bullish Calls – Staying the course with Intel (INTC) has the possibility for further upside, with our target set at $30 for the stock.

LULU – 11 DTE

Bullish Debit Spread – We currently have a nice profit, as the stock is above our short strike in the bull call vertical spread. While we could close the position soon, time decay works in our favor, but an increase in implied volatility is a concern with the company’s earnings announcement scheduled for December 5th.

QQQ – 53 DTE

Bullish Calls – We still have 54 DTE and plan to stay the course, as this is a longer-term outlook we have on this ETF.

SHOP – 53 DTE

Bullish Debit Spread – Shopify (SHOP) – We are down on this position, but we plan to stay the course for now.

XLF – 53 DTE

Bullish Calls – Financial Select Sector SPDR ETF (XLF) – We established a long call position in the financial sector and plan to stay the course for now.

Closing Trade

• ADI – 33% loss: Sell to Close 6 Contracts (or 100% of your Contracts) Nov 22/Nov 29 $202.50/$207.50 Put Diagonal Spreads @ $2.82 Credit. DailyPlay Portfolio: By Closing all 6 Contract, we will receive $1,692. We opened these 6 Contract on November 19 @ $4.25 Debit. As we are Rolling ADI, we will open a new position to generate a Net Credit of $1.85.

ADI Bearish Opening Trade Signal

Investment Rationale

Analog Devices, Inc. (ADI) recently broke down from its trading range with strong momentum and is underperforming the S&P 500. Our downside target is the $200 support level on the chart.

From a fundamental perspective, ADI appears overvalued compared to its peers. The company is scheduled to announce earnings before the market opens on Tuesday, November 26th, and the stock has experienced a recent uptick.

With the stock at $209.65, we executed a bearish put diagonal spread: so we will make 1.13 – .08 = 1.05 on the 202.5 put to start. 

• Buy 1 Nov 29th Put 207.50 (10 DTE) @ $4.50
• Sell 1 Nov 22nd Put 202.50 (3 DTE) @ $1.13 

Net debit for the spread: $3.37 as of Thursday’s close, the stock was at $213.96, leaving the Nov 22nd 202.50 strike put out-of-the-money (OTM). We plan to close this option contract for a few cents and roll into a Nov 29th put with the same strike. This adjustment will capture a significant implied volatility (IV) premium due to the upcoming earnings report and position us in a long put vertical spread that we can hold through the announcement.

As we are Rolling ADI, we are therefore closing the original trade and open a new position to generate a Net Credit of $1.85.

ADI – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 20 ADI Nov 29 $207.50/$202.50 Put Vertical Spreads @ $0.97 Debit per Contract. With the $2.82 Credit that we receive when closing the original trade, we will generate a Net Credit of $1.85 ($2.82 – $0.97).

Total Risk: This trade has a max risk of $1,940 (20 Contract x $97) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $97 to select the # contracts for your portfolio.

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

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 149

Stop Loss: @ $0.49 (50% loss of premium paid)

View ADI 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 ADI Trade

LULU Bullish Opening Trade Signal

Investment Rationale

Lululemon Athletica Inc. (LULU) has recently broken out above its trading range with strong momentum, outperforming the S&P 500, creating an opportunity for further upside toward our $320 target. Despite trading at a 10% discount compared to its peers, LULU is poised to grow revenues at nearly double the industry average while maintaining significantly higher profitability, with a forward P/E ratio of 21.44x, expected EPS and revenue growth of 8.15% and 8.07%, respectively, and net margins of 16.34%. In comparison, the industry average has a forward P/E of 22.05x, expected revenue growth of 4.91%, and net margins of 9.82%. The company’s earnings announcement is expected on December 5th.

LULU – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spreads

Direction: Bullish Debit Spread

Details: Buy to Open 3 LULU Dec 6 $302.50/$315 Call Vertical Spreads @ $6.60 Debit per Contract.

Total Risk: This trade has a max risk of $1,980 (3 Contract x $660) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $660 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that is expected to bounce off recent support.

1M/6M Trends: Neutral/Mildly Bullish

Relative Strength: 6/10

OptionsPlay Score: 87

Stop Loss: @ $3.30 (50% loss of premium paid)

View LULU 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 LULU Trade

AZN Bullish Opening Trade Signal

Investment Rationale

AstraZeneca PLC (AZN) is oversold on daily and weekly timeframes, signaling exhaustion and potential for a rally.

With strong EPS growth (34.56%) and net margins (12.7%), AZN trades at an 8% discount to peers, suggesting upside potential.

AZN – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spreads

Direction: Bullish Debit Spread

Details: Buy to Open 8 AZN Dec 20 $62/$69 Call Vertical Spreads @ $2.71 Debit per Contract.

Total Risk: This trade has a max risk of $2,168 (8 Contract x $271) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $271 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that is expected to bounce off recent support as it formed a bullish divergence.

1M/6M Trends: Bearish/Bearish

Relative Strength: 2/10

OptionsPlay Score: 106

Stop Loss: @ $1.36 (50% loss of premium paid)

View AZN 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 AZN Trade

ADI Bearish Opening Trade Signal

Investment Rationale

Analog Devices, Inc. (ADI) recently broke down from its trading range with strong momentum and is underperforming the S&P 500, signaling potential downside to our $200 target.

From a fundamental perspective, ADI appears overvalued relative to its peers. Despite trading at a 38% premium, its net margins (17.07%) trail the industry average (19.87%), and revenue growth (13.67%) offers limited upside as earnings continue to decline.

The company is expected to announce earnings before the market opens on Tuesday, November 26, which will be factored into our option strategy.

ADI – Daily

Trade Details

Strategy Details

Strategy: Long Put Diagonal Spread

Direction: Bearish Put Diagonal Spread

Details: Buy to Open 6 ADI Nov 22/Nov 29 $202.50/$207.50 Put Diagonal Spreads @ $3.37 Debit per Contract.

Total Risk: This trade has a max risk of $2,022 (6 Contract x $337) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $337 to select the # contracts for your portfolio.

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

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 170

Stop Loss: @ $1.69 (50% loss of premium paid)

View ADI 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 ADI Trade

Closing Trades

• DIS – 132% gain: Sell to Close 4 Contracts (or 100% of your Contracts) Dec 13 $93/$105 Call Vertical Spreads @ $12.01 Credit. DailyPlay Portfolio:  By Closing all 4 Contracts, we will receive $4,804  We initially opened these 4 Contracts on November 6 @ $5.17 Debit. Our gain on this trade, therefore, is $2,736 which is more than 2% gain on our total portfolio.
• SQ – 113% gain: Sell to Close 5 Contracts (or 100% of your Contracts) Nov 22 $70/$80 Call Vertical Spreads @ $9.45 Credit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will receive $4,725  We initially opened these 5 Contracts on October 23 @ $4.43 Debit. Our gain on this trade, therefore, is $2,510 which is more than 2% gain on our total portfolio.

DailyPlay Portfolio Review

Our Trades

ADBE – 32 DTE

Bullish Debit Spread – Adobe Inc. (ADBE) remains volatile, recently bouncing off support at $500. The stock has struggled to break through the key resistance level at $525, but if it clears this, further upside to $550 is likely. The trade is currently profitable, and we plan to maintain our position. With an expiration date extending beyond the early December earnings report, we have the flexibility to hold through the announcement or potentially roll up the position.

AMZN – 60 DTE

Bullish Debit Spread – Amazon.com Inc. (AMZN) recently reported strong earnings. Although the stock has experienced a pullback, we remain bullish and will continue monitoring the position closely.

DIS – 25 DTE

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

INTC – 60 DTE

Bullish Calls – Staying the course still presents an opportunity for further upside toward our $30 target.

QQQ – 60 DTE

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

SHOP – 60 DTE

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

SQ – 4 DTE

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

XLF – 60 DTE

Bullish Calls – We recently established the long call position in the financial sector and plan to stay the course for now.

SHOP Bullish Opening Trade Signal

Investment Rationale

Shopify (SHOP) stock surged by 25% following the announcement of better-than-expected earnings and an optimistic forecast for the holiday season. We recently executed a bullish long calendar trade in SHOP ahead of the earnings report. The company’s strong financial performance has fueled significant upside momentum, boosting investor confidence. Shopify’s revenue growth exceeded analyst expectations, indicating continued momentum as the holiday shopping season approaches. Consequently, we are considering a longer-term bullish strategy as we head into the year’s end.

SHOP – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 3 SHOP Jan 17 $105/$125 Call Vertical Spreads @ $7.14 Debit per Contract.

Total Risk: This trade has a max risk of $2,142 (3 Contract x $714) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $714 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 114

Stop Loss: @ $3.57 (50% loss of premium paid)

View SHOP 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 SHOP Trade

DailyPlay Portfolio Review

Our Trades

ADBE – 36 DTE

Bullish Debit Spread – With a strong bounce off support at $500, ADBE is currently testing a key area at $525. Further upside is likely with the next target at $550.

AMZN – 64 DTE

Bearish Call Butterfly – AMZN broke out above its trading range with strong momentum and is now pulling back from recent highs. We will keep a close eye on this position.

DIS – 29 DTE

Bullish Debit Spread – Dis gapped higher from support at $100 toward the $110 area. Our bullish thesis on this trade remains in place.

IBM – 1 DTE

Bearish Credit Spread – This trade expires tomorrow while we are having some gains on our side.

INTC – 64 DTE

Bullish Calls – INTC pulled back to support at around $24, from where it is trading higher. The next upside target is at around $29.

QQQ – 64 DTE

Bullish Calls – QQQ is pulling back from recent highs with the $500 level as an area of support. We will keep a close eye on this position.

SQ – 8 DTE

Bullish Debit Spread – SQ experienced strong bullish momentum as it gain almost 20% in a few days. Further upside is likely after some consolidation and with 8 days left until expiration, we will keep this position open.

XLF – 64 DTE

Bullish Calls – XLF is currently grinding higher after it gapped to the upside. A break above the $50 psychological barrier could indicate continued upside.