AMZN Bullish Opening Trade Signal

Investment Rationale

Amazon.com Inc. (AMZN) recently reported a strong third-quarter profit of $17.4 billion, surpassing expectations with an 11% operating margin, a notable improvement from last year. The company highlighted momentum in both its retail and Amazon Web Services (AWS) segments. With AI initiatives like ‘Project Amelia’ supporting third-party sellers, AMZN is well-positioned for continued growth. The stock has recently reached new all-time highs, breaking out of its trading range with strong momentum. Having been featured in a speculative Daily Play before earnings, we are now considering a longer-term trade as the holiday season approaches.

AMZN – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 2 AMZN Jan 17 $205/$230 Call Vertical Spreads @ $9.41 Debit per Contract.

Total Risk: This trade has a max risk of $1,882 (2 Contract x $941) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $941 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: 6/10

OptionsPlay Score: 106

Stop Loss: @ $4.71 (50% loss of premium paid)

View AMZN 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 AMZN Trade

INTC Bullish Opening Trade Signal

Investment Rationale

Intel Corporation (INTC) recently broke out above its trading range with strong momentum and is outperforming the S&P 500, presenting an opportunity for further upside toward our $30 target. The company is modestly undervalued, and with its focus on cost-cutting and successfully navigating restructuring and impairment expenses, the outlook is becoming more optimistic due to operational improvements. As INTC continues to reduce costs and move past these restructuring and impairment challenges, the future looks promising, with operating margins returning to normal and revenue expectations being consistently exceeded.

INTC – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 4 INTC Jan 17 $21 Call @ $4.70 Debit per Contract.

Total Risk: This trade has a max risk of $1,880 (4 Contract x $470) based on a hypothetical $100,000 portfolio normally risking 2%. We suggest using 2% of your portfolio value and divide it by $470 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/Neutral

Relative Strength: 3/10

OptionsPlay Score: 78

Stop Loss: @ $2.35 (50% loss of premium paid)

View INTC 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 INTC Trade

Closing Trades

• COST – 100% loss: Buy to Close 2 Contracts (or 100% of your Contracts) Nov 15 $930/$940/$950 Modified Call Butterflies @ $3.63 Debit. DailyPlay Portfolio:  By Closing both Contracts, we will pay $646. We initially opened these 2 Contracts on October 30 @ $0.40 Credit. Our loss on this trade, therefore, is $283 per Contract.
• JNJ – 100% loss: Buy to Close 5 Contracts (or 100% of your Contracts) Nov 29 $160/$155 Put Vertical Spreads @ $3.56 Debit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will pay $1,780  We initially opened these 5 Contracts on October 24 @ $0.83 Debit. Our loss on this trade, therefore, is $273 per Contract.
• VIX – 41% gain: Sell to Close 12 Contracts (or 100% of your Contracts) VIX Nov 20 $19/$16 Put Vertical Spreads @ $2.65 Credit DailyPlay Portfolio:  By Closing all 12 Contracts, we will receive $3,180  We initially opened these 12 Contracts on October 25 @ $1.57 Debit. Our gain on this trade, therefore, is $1,296 which is more than 1% gain on our total portfolio.

DailyPlay Portfolio Review

Our Trades

ADBE – 39 DTE

Bullish Debit Spread – Adobe Inc. (ADBE) has recently entered oversold territory and remains volatile, but it has started to build some upside momentum. We are currently profitable on the trade and plan to maintain our position. Our expiration date extends beyond the upcoming earnings report in early December, giving us the flexibility to hold the position through the announcement if we choose to.

COST – 4 DTE

Bearish Call Butterfly – This position is an interesting case. We intended for the stock to decline in price and for all the options to expire worthless, allowing us to capture the $0.40 net credit received when establishing the 1x3x2 butterfly position. The hedge provided by the long call vertical spread in the butterfly helped mitigate some risk. If the move to the middle strike (940) had occurred closer to the expiration date, the trade would have been notably profitable. At this point, it’s all about time decay, and if the stock were to remain around the 940 strike until expiration, it would become profitable because of theta decay. However, given the bullish momentum of the overall market, closing this position is warranted. We are closing this position today.

DIS – 32 DTE

Bullish Debit Spread – The Walt Disney Company (DIS) was lifted by the overall bullish market and has broken out of its previous trading range. We hope this upward trend continues as the company’s earnings date approaches, with earnings scheduled for November 14. We will maintain our current position for now.

IBM – 4 DTE

Bearish Credit Spread – We’re closely monitoring this bearish IBM position, which is currently at a loss. While there’s some weakness on the chart, expiration is quickly approaching, and we may need to close the position early in the week.

JNJ – 18 DTE

Bullish Credit Spread – Johnson & Johnson (JNJ) has broken through its downside support level in a strong bullish market environment. It has fallen to the long strike of our short put vertical spread (155), so it’s time to close the position and take the loss at this stage. We are closing this position today.

QQQ – 67 DTE

Bullish Calls – Invesco QQQ Trust (QQQ) – The conclusion of an election cycle often provides market clarity, reducing volatility and boosting investor confidence. We just established this position and plan to stay the course.

SQ – 11 DTE

Bullish Debit Spread – Block Inc. (SQ) announced earnings on November 7th. The stock opened lower after the announcement but finished with solid upside momentum by the close. We have a gain in the position and will stay the course for now.

XLF – 67 DTE

Bullish Debit Spread – Financial Select Sector SPDR ETF (XLF) – This position is part of our post-election cycle strategy. We’ve just established the long call position in the financial sector and plan to stay the course for now.

VIX – 8 DTE

Bullish Debit Spread – We are closing this position today.

QQQ Bullish Opening Trade Signal

Investment Rationale

Invesco QQQ Trust (QQQ) – The conclusion of an election cycle often provides market clarity, reducing volatility and boosting investor confidence. Our post-election strategy began with the purchase of a bearish long put spread on the VIX index (DailyPlay – Opening Trade (VIX) – October 25, 2024), anticipating a decrease in volatility. Next, we bought in-the-money calls on the XLF, the financial ETF. Looking ahead, the tech sector creates global value by improving efficiency and addressing challenges across various industries. QQQ stocks are well-positioned to drive these outcomes, supporting continued growth and gains.

QQQ – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 1 QQQ Jan 17 $495 Call @ $31.34 Debit per Contract.

Total Risk: This trade has a max risk of $3,134 (1 Contract x $3,134) based on a hypothetical $100,000 portfolio normally risking 2% (3% in today’s case). We suggest using 2% of your portfolio value and divide it by $3,134 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: 79

Stop Loss: @ $15.67 (50% loss of premium paid)

View QQQ 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 QQQ Trade

XLF Bullish Opening Trade Signal

Investment Rationale

Financial Select Sector SPDR ETF (XLF) – The conclusion of an election cycle often brings clarity to the market and reduces volatility, boosting investor confidence. Our after the election strategy began with the purchase of a bearish long put spread on the VIX index (DailyPlay – Opening Trade (VIX) – October 25, 2024), anticipating that volatility would decrease following the election. The next step is to position in select market sectors during the post-election optimism, which coincides with the holiday season. If interest rates remain favorable, policies support growth, and the economy continues to expand, the financial sector appears promising. Despite a 31% increase in the XLF this year, financial stocks remain undervalued, trading at a 25% discount to the S&P 500. This suggests potential for continued growth, as investor allocations to financials are at their lowest since 2010.

XLF – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 8 XLF Jan 17 $48 Calls @ $2.72 Debit per Contract.

Total Risk: This trade has a max risk of $2,176 (8 Contracts x $272) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $272 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: 9/10

OptionsPlay Score: 90

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

View XLF 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 XLF Trade

DIS Bullish Opening Trade Signal

Investment Rationale

The Walt Disney Company (DIS) stock has recently been in a very tight trading range between $95 and $97, as it appears undecided on its next direction. With earnings scheduled for November 14, this announcement could serve as the catalyst needed for an upside breakout. From a fundamental perspective, the stock appears modestly undervalued. After struggling to grow over recent quarters, DIS has reversed course, showing improvements in both revenue and EPS growth. Over the trailing twelve months (TTM), the company has posted record revenues and net income.  We will look to get bullish and use call options with an expiration that extends well beyond the earnings date.

DIS – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 4 DIS Dec 16 $93/$105 Call Vertical Spreads @ $5.17 Debit per Contract.

Total Risk: This trade has a max risk of $2,068 (4 Contracts x $517) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $517 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/Neutral

Relative Strength: 3/10

OptionsPlay Score: 99

Stop Loss: @ $2.59 (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

ADBE Bullish Opening Trade Signal

Investment Rationale

Adobe Inc. (ADBE) has recently reached oversold conditions on both daily and weekly timeframes, exhibiting signs of exhaustion that may signal a higher likelihood of a strong rally ahead. Currently modestly undervalued, ADBE trades at a discount relative to its industry, despite growth rates and profitability metrics that surpass industry averages. With a monetized AI product already generating revenue, ADBE presents strong upside potential from a valuation perspective. Additionally, the earnings date for this quarter falls in mid-December. Our expiration date extends beyond this earnings report, allowing us to hold the position through the announcement.

ADBE – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 2 ADBE Dec 20 $475/$495 Call Vertical Spreads @ $9.70 Debit per Contract.

Total Risk: This trade has a max risk of $1,940 (2 Contracts x $970) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $970 to select the # contracts for your portfolio.

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

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 94

Stop Loss: @ $4.85 (50% loss of premium paid)

View ADBE 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 ADBE Trade

Closing Trades

• BMY – 18.80% gain: Sell to Close 5 Contracts (or 100% of your Contracts) November 15 $50 Calls @ $4.55 Credit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will receive $2,275. We initially opened these 5 Contracts on October 15 @ $3.83 Debit. Our gain on this trade, therefore, is $360.
• LULU – 27.15% gain: Sell to Close 3 Contracts (or 100% of your Contracts) Nov 15/Dec 6 $315/$320 Call Diagonals @ $12.27 Credit. DailyPlay Portfolio:  By Closing all 3 Contracts, we will receive $3,681. We initially opened these 3 Contracts on October 29 @ $9.65 Debit. Our gain on this trade, therefore, is $786.

DailyPlay Portfolio Review

Our Trades

BMY – 11DTE

Bullish Calls – We are closing this position today.

COST – 11 DTE

Bearish Modified Call Butterfly – We continue to hold a bearish outlook on Costco (COST) from a valuation standpoint, staying the course on the position, which is up slightly.

IBM – 11 DTE

Bearish Credit Spreads – IBM continues to indicate overbought signals, reinforcing our bearish stance. We’ll hold steady on the position, which has gained slightly.

JNJ – 25 DTE

Bullish Credit Spreads – JNJ has been volatile recently and has returned to its downside support level, which has been unfavorable for this trade, as it is also the short strike of our put vertical spread. With 26 days until expiration, we need to monitor this position closely.

LULU – 32 DTE

Bullish Call Diagonals – We are closing this position today.

SQ – 18 DTE

Bullish Debit Spread – SQ’s rapid growth suggests it could soon reach a more reasonable valuation of 19-20x forward earnings. With the company’s earnings expected on November 7th, there’s a strong chance we will hold this position through the report. We’ll stay the course on this position as the earnings date approaches.

IBM Bearish Opening Trade Signal

Investment Rationale

IBM shows overbought signals, suggesting a likely selloff. Although its valuation aligns with industry averages, IBM is overvalued due to slower growth prospects and similar profitability. Key metrics reveal IBM’s lower expected growth in EPS and revenue, highlighting potential downside risks.

IBM – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 5 IBM Nov 15 $212.50/$217.50 Call Vertical Spreads @ $0.90 Credit per Contract.

Total Risk: This trade has a max risk of $2,050 (5 Contracts x $410) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $410 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue lower from recent highs.

1M/6M Trends: Bearish/Neutral

Relative Strength: 9/10

OptionsPlay Score: 94

Stop Loss: @ $1.80 (100% loss to value of premium)

View IBM 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 IBM Trade

AMZN Bullish Opening Trade Signal

Investment Rationale

Amazon.com, Inc. (AMZN) demonstrates robust earnings growth and profitability, underscoring its strength in e-commerce, with significant revenue and market share. The stock is trending upward, and while Amazon isn’t always central in AI discussions, AWS and its AI capabilities contribute substantially to profitability. Recently, Amazon announced it has been working behind the scenes on ‘Project Amelia,’ an AI tool for third-party sellers that optimizes decision-making, attracts sellers, and supports revenue growth, which should positively impact AMZN’s bottom line.

Amazon announces earnings after market close on Halloween, Thursday the 31st. We plan to explore a speculative trade around this event, hoping the conference call won’t spook the market but instead drives the stock higher based on its AI initiatives.

AMZN – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 6 AMZN Nov 1 $195/$205 Call Vertical Spreads @ $3.45 Debit per Contract.

Total Risk: This trade has a max risk of $2,070 (6 Contracts x $345) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $345 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: 6/10

OptionsPlay Score: 97

Stop Loss: @ $1.73 (50% loss of premium)

View AMZN 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 AMZN Trade