AKAM Bullish Opening Trade Signal

Investment Rationale

Akamai Technologies (AKAM) recently broke out above its $102.50 resistance level, with a potential target of $125. The chart shows a long period of underperformance, followed by a bottoming formation, and now it appears to be breaking out. While often overlooked, Akamai’s edge computing servers are well-suited for AI applications, offering faster service and enhanced security. Despite trading at a discount, Akamai’s technology could play a crucial role in AI deployment, potentially driving future revenue growth. With the upcoming Earnings Date on Thursday November 7th, we will use the potential implied volatility increase caused by this known event in our strategy choice.

AKAM – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 4 AKAM Nov 8 $101 Calls @ $5.90 Debit per Contract.

Total Risk: This trade has a max risk of $2,360 (4 Contracts x $590) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $590 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: 84

Stop Loss: @ $2.95 (50% loss of premium)

View AKAM 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 AKAM Trade

BMY Bullish Opening Trade Signal

Investment Rationale

Bristol-Myers Squibb Co. (BMY) recently broke out above its trading range with strong momentum, outperforming the S&P 500 and presenting a promising upside toward our $60 target. The stock has strengthened by turning former resistance levels into support. We view the recent selloff as a compelling buying opportunity, as BMY currently trades at a significant discount to its peers. Emerging from a period of net losses, BMY is expected to return to profitability by 2025, positioning the stock for further gains and bringing it more in line with its industry. With the upcoming earnings announcement before the open on October 31, 2024, we will factor this event into our strategy selection.

BMY – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 5 BMY Nov 15 $50 Calls @ $3.75 Debit per Contract.

Total Risk: This trade has a max risk of $1,875 (5 Contracts x $375) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $375 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: 7/10

OptionsPlay Score: 77

Stop Loss: @ $1.88 (50% loss of premium)

View BMY 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 BMY Trade

Closing Trade

RACE – 42.16% loss: Sell to Close 2 Contracts (or 100% of your Contracts) November 15 $460/$440 Put Vertical Spreads @ $5.90 Credit. DailyPlay Portfolio:  By Closing both Contracts, we will receive $1,180. We initially opened these 2 Contracts on October 7 @ $10.20 Debit. Our loss on this trade, therefore, is $430 per Contract.

Investment Rationale

We are Closing this position today based on recent news that might influence the stock price. Recent news: JPMorgan upgraded Ferrarri (RACE) from Neutral to Overweight and massively upgraded its price target from $385 to $525 per share. Analysts cited such attributes as Ferrarri’s unit volume growth, discipline, and innovation as drivers for the upgrade and price target boost.

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Our Trades

AAPL – 18 DTE

Bearish Credit Spread – In Apple Inc. (AAPL) we recently rolled our credit spread position out and down to the November 1 $225/$230 call vertical to collect another $2.08 in credit. The trend is still bearish, and we are staying the course while remaining aware that the company is anticipated to announce earnings on October 31st.

ABBV – 18 DTE

Bearish Puts – ABBV (AbbVie Inc.) is still holding below its $195 support and maintains downside potential as it continues to underperform relative to the market. The anticipated earnings date is 10/30/24, and the gradual increase in implied volatility (IV) as earnings approach has kept our out-of-the-money (OTM) put alive in this trade. However, the position is on a short leash this week. If the stock closes above $195 or does not start drifting downward, we will close the position and move on from our long puts.

DIS – 11 DTE

Bullish Calendar Spreads – After struggling to grow in recent quarters, DIS has reversed course, showing improvements in both revenue and EPS growth. With the company set to report on November 14th, this known event plays a significant role in our strategy. Ideally, we’d like the stock to slow its roll, or we may have to roll the short-term option contracts up and out. The bullish move this week is positive for our position, but with a strike at $95, we don’t want the stock to move too quickly above our strike. It’s not a bad problem to have, but we may need to adjust sooner rather than later if the bullish trend continues.

META – 4 DTE

Bullish Call Butterflies – Meta has been volatile recently but is currently within the wings of our modified butterfly, giving us a smidgen of a gain. We still think the stock can retest the $600 level, but with the expiration date approaching this Friday, the position will be interesting to watch as it reflects every stock price tick until then. We need to monitor this position closely.

MMM – 4 DTE

Bearish Debit Spread – 3M Company (MMM) is still lingering in overbought territory, with expiration fast approaching this Friday. We currently have a small gain on the position, but this is another one we need to keep a close eye on.

DIS Bullish Opening Trade Signal

Investment Rationale

Casting a line to do some bottom fishing in The Walt Disney Company (DIS): DIS recently broke out above its trading range and has since pulled back to the $92 support level, offering an attractive risk/reward entry for bullish exposure. From a fundamentals perspective, the stock appears modestly undervalued. After struggling to grow over the past few quarters, DIS has reversed course, showing improvements in both revenue and EPS growth. For the trailing twelve months (TTM), the company has posted record revenues and net income. Also, ’tis the season for earnings announcements, and DIS will be reporting on November 14th—this event will be factored into our strategy selection.

DIS – Daily

Trade Details

Strategy Details

Strategy: Long Call Calendar Spread

Direction: Bullish Calendar Spread

Details: Buy to Open 8 DIS Oct 25/Nov 15 $95 Call Calendar Spreads @ $2.41 Debit per Contract.

Total Risk: This trade has a max risk of $1,928 (8 Contracts x $241) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $241 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/Neutral

Relative Strength: 2/10

OptionsPlay Score: 64

Stop Loss: @ $1.22 (50% loss of premium)

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 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 DIS Trade

META Bullish Opening Trade Signal

Investment Rationale

Although META is currently overvalued, it trades at a discount relative to its industry peers and is expected to achieve faster growth in both revenue and earnings going forward. Additionally, its higher profitability suggests further upside potential. Recently, META broke out of its trading range, reaching our target of $600 before pulling back slightly ahead of its highly anticipated earnings report at the end of the month. We expect the stock to retest the $600 level before the earnings announcement, and as part of our strategy, we will employ option contracts expiring prior to the report.

META – Daily

Trade Details

Strategy Details

Strategy: Long Call Butterfly

Direction: Bullish Call Butterfly

Details: Buy to Open 4 META October 18 $585/$600/$610 Call Butterflies @ $4.53 Debit per Contract.

Total Risk: This trade has a max risk of $1,812 (4 Contracts x $453) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $453 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 167

Stop Loss: @ $2.27 (50% loss of premium)

View META 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 META Trade

Closing Trade

• SHOP – 43.05% gain: Sell to Close 7 Contracts (or 100% of your Contracts) Oct 18/Nov 15 $85 Call Calendars @ $4.22 Credit. DailyPlay Portfolio:  By Closing all 7 Contracts, we will receive $2,954. We initially opened these 7 Contracts on September 23 @ $2.95 Debit. Our gain on this trade is therefore $889 which is almost 1% gain on our Portfolio.

Closing Trades

• AAPL – 53.57% gain: Buy to Close 5 Contracts (or 100% of your Contracts) October 25st $235/$240 Call Vertical Spreads @ $0.43 Debit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will pay $215. We initially opened these 5 Contracts on October 3 @ $0.93 Credit. Our gain on this trade is therefore $250.
• ALL – 100% loss: Buy to Close 5 Contracts (or 100% of your Contracts) October 18st $185/$180 Put Vertical Spreads @ $2.50 Debit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will pay $1,250. We initially opened these 5 Contracts on September 26 @ $1.09 Credit. This trade, therefore, had a loss of $141 Debit per Contract.

AAPL Bearish Opening Trade Signal/ Rolling Trade

Investment Rationale

As AAPL is rejected at its $230 resistance level, we are looking for a continuation lower and we are looking to lock in some profits and roll it out and down to the Nov 1 $225/$230 Call Vertical to collect another $2.08 in Credit. 

With another hurricane barreling down the Gulf coast of Florida, insurance stocks such as ALL are getting hammered and we need to close out this trade to prevent further losses. 

We are Rolling AAPL by closing the one trade and opening a new trade with an expiry date a little further out.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 7 AAPL November 1 $225/$230 Call Vertical Spreads @ $2.08 Credit per Contract.

Total Risk: This trade has a max risk of $2,044 (7 Contracts x $292) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $292 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that failed to break above resistance and is likely to pullback to lower levels.

1M/6M Trends: Bearish/Neutral

Relative Strength: 9/10

OptionsPlay Score: 108

Stop Loss: @ $4.16 (100% loss to the value 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 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 AAPL Trade

RACE Bearish Opening Trade Signal

Investment Rationale

RACE recently broke down above its trading range with strong momentum an underperforming the S&P 500, providing an opportunity for further downside to our $400 target. With industry leading growth rates and profitability metrics, RACE warrants a premium valuation relative to its peers, but at more than 4x the industry average, RACE has significant downside risks to its valuation.

RACE – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 2 RACE November 15 $460/$440 Put Vertical Spreads @ $9.05 Debit per Contract.

Total Risk: This trade has a max risk of $1,810 (2 Contracts x $905) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $905 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is trading lower from a previous high.

1M/6M Trends: Bearish/Neutral

Relative Strength: 4/10

OptionsPlay Score: 116

Stop Loss: @ $4.53 (50% loss of premium)

View RACE 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 RACE Trade

Closing Trades

• XOM – 71% loss: Buy to Close 6 Contracts (or 100% of your Contracts) Nov 1st $120/$125 Call Vertical Spreads @ $2.65 Debit. DailyPlay Portfolio:  By Closing all 6 Contracts, we will pay $1,584. We initially opened these 6 Contracts on September 24 @ $1.54 Credit. This trade had a loss of $1.11 Debit per Contract.

• XOM – 65% gain: Sell to Close 6 Contracts (or 100% of your Contracts) Nov 1st $125 Calls @ $2.66 Credit. DailyPlay Portfolio:  By Closing all 6 Contracts, we will receive $1,596. We initially opened these 6 Contracts on October 2 @ $1.61 Debit. This trade generated $1.05 Credit per Contract. The combination of both XOM trades had a minimal loss of $0.06 Debit per Contract.

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Our Trades

AAPL – 21 DTE

Bearish Credit Spread – Holding below key $230 resistance level, we’re looking for a continuation lower towards its $215 support level.

ABBV – 28 DTE

Bearish Puts – If ABBV breaks above the $200 resistance, it would warrants closing this position. For now we are closely monitoring this trade.

ALL – 14 DTE

Bullish Credit Spread – ALL is trading rangebound above support at $185. We will keep a close eye on this trade to see if support holds.

MMM – 14 DTE

Bearish Debit Spread – We’re looking for MMM to hold below $135 to reach our $122 downside target.

SHOP – 14 DTE

Bullish Calendar Spread – SHOP remains bullish as support at $76 is holding up, and we’re looking for a breakout towards the $85 target.

AAPL Bearish Opening Trade Signal

Investment Rationale

Apple Inc. (AAPL) has been rangebound between $215 and $232.50, recently rejecting the upper limit, suggesting it may revisit $215 before a breakout. Fundamentally, AAPL appears modestly overvalued, trading at a premium to peers despite only slightly higher growth, with its industry-leading margins not enough to justify the high valuation.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 5 AAPL October 25 $235/$240 Call Vertical Spreads @ $1.06 Credit per Contract.

Total Risk: This trade has a max risk of $1,970 (5 Contracts x $394) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $394 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bearish trade on a stock that is trading rangebound and not expected to continue higher.

1M/6M Trends: Bullish/Bullish

Relative Strength: 10/10

OptionsPlay Score: 96

Stop Loss: @ $2.12 (100% loss to value 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