DailyPlay Portfolio Review

Our Trades

AKAM – 14 DTE

Bullish Debit Spread – Akamai Technologies, Inc. (AKAM) – The position is currently profitable, and expiration is approaching quickly, so we will most likely close the position sooner rather than later.

FDX – 28 DTE

Bullish Credit Spread – FedEx Corp (FDX) – We have a solid gain in this position and plan to stay the course for now. The company reported very strong earnings, and the stock initially reacted positively to the announcement, though it has pulled back slightly recently amid broader market weakness.

META – 167 DTE

Bullish Long Call – Meta Platforms, Inc. (META) – We continue to favor a longer-term bullish outlook. The position is profitable, and we intend to maintain it. We recently sold a short-term call against the longer-dated call to reduce the overall cost basis, and that option expired worthless, achieving our objective.

NET – 21 DTE

Bullish Credit Spread – Cloudflare Inc (NET) – We recently established this position, currently have a small loss, and plan to stay the course for now.

NVDA – 167 DTE

Bullish Diagonal Debit Spread – NVIDIA Corporation (NVDA) – We remain longer-term bullish following strong earnings and solid fundamentals. Recently, we sold a shorter-dated call to collect premium, reduce our cost basis, and maintain upside exposure. That short-term option has expired, and we captured the full premium.

Closing Trade

• AFRM – 73% loss: Buy to Close 3 Contracts (or 100% of your Contracts) Jan 30 $66/$76 Call Vertical Spreads @ $6.95 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $2,085. We initially opened these 3 contracts on December 16 @ $4.02 Credit. Our loss, therefore, is $293 per contract.

DailyPlay Portfolio Review

Our Trades

AFRM – 39 DTE

Bearish Credit Spread – Affirm Holdings, Inc. (AFRM) – We recently established this position, currently have a minimal loss, and plan to stay the course for now.

AKAM – 25 DTE

Bullish Debit Spread – Akamai Technologies, Inc. (AKAM) – We recently established this position, currently have a solid gain, and plan to stay the course for now.

FDX – 39 DTE

Bullish Credit Spread – FedEx Corp (FDX) – We have a solid gain in this position and plan to stay the course for now. The company reported earnings last week with very strong results, and the stock reacted positively to the announcement.

META – 178 DTE

Bullish Long Call – Meta Platforms, Inc. (META) – Our outlook supports a longer-term bullish approach. The position is currently showing a solid gain, and we plan to maintain it. We recently sold a short-term call against the longer-dated call to help reduce the overall cost basis, and that option expired worthless last week, accomplishing our goal.

NET – 32 DTE

Bearish Credit Spread – Cloudflare Inc (NET) – We recently established this position, currently have a small loss, and plan to stay the course for now.

NVDA – 4 DTE & 178 DTE

Bullish Diagonal Debit Spread – NVIDIA Corporation (NVDA) – We remain longer-term bullish following strong earnings and solid fundamentals. Despite a recent short-term bearish signal, we hedged modest losses by selling a shorter-dated call to collect premium, lower our cost basis, and maintain upside exposure. The shorter-term option is currently out-of-the-money and will most likely expire this week.

NET Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
We recently closed a bearish credit spread in Cloudflare Inc. (NET) for a quick profit, and we are looking to go back to the well with another bearish opportunity. While Cloudflare remains a high-quality business with a strong long-term narrative, the stock continues to trade at a premium that leaves little margin for error. As momentum fades and investors become more selective with richly valued software names, NET appears vulnerable to further downside or, at best, extended consolidation—creating an attractive setup for a defined-risk bearish options strategy.

Technical Analysis
Technically, NET is showing signs of deterioration following a failed breakout attempt near recent highs. The stock has rolled over and is now trading below its shorter-term moving averages, with the 20-day and 50-day trending lower and acting as overhead resistance. Relative strength has weakened, and RSI remains subdued, suggesting limited upside momentum. While the longer-term uptrend remains intact above the 200-day moving average, the near- to intermediate-term price action favors sellers, particularly if the stock struggles to reclaim the $200–$210 area.

Fundamental Analysis
From a fundamental perspective, Cloudflare continues to command a valuation premium versus its peers, driven by strong growth expectations, but profitability metrics remain less compelling. This imbalance increases downside risk if growth expectations moderate.

• Forward PE Ratio: 39.20x vs. Industry Median 24.89x
• Expected EPS Growth: 42.72% vs. Industry Median 13.67%
• Expected Revenue Growth: 16.81% vs. Industry Median 14.67%
• Net Margins: 8.41% vs. Industry Median 10.28%

Options Trade
To express this bearish bias, we are selling the NET Jan 23, 2026 200/210 call vertical for a credit of approximately $3.40. This defined-risk strategy benefits if NET remains below the $200 strike through expiration, allowing time decay to work in our favor. The trade offers a maximum reward of $340 against a maximum risk of $660, creating a favorable risk/reward profile given current technical resistance and elevated valuation. By positioning above key resistance, the structure provides a cushion against minor upside while targeting continued weakness or consolidation in the stock.

NET – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 3 NET Jan 23 $200/$210 Call Vertical Spreads @ $3.40 Credit per Contract.

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

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

1M/6M Trends: Bearish/Mildly Bearish

Relative Strength: 4/10

OptionsPlay Score: 101

Stop Loss: @ $6.80 (100% loss to value of premium)

View NET 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 NET Trade

Closing Trade

• NET – 55% gain: Buy to Close 3 Contracts (or 100% of your Contracts) Jan 16 $210/$220 Call Vertical Spreads @ $1.72 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $516. We initially opened these 3 contracts on December 12 @ $3.80 Credit. Our gain, therefore, is $624.

FDX Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
FedEx Corp. (FDX), We recently closed a bullish credit spread and realized profits ahead of the company’s earnings report scheduled for this Thursday, December 18th, after the close. While the decision was driven by prudent risk management ahead of the event, our broader bullish thesis on FedEx remains unchanged. FDX continues to show strengthening momentum within the transportation sector, while supportive valuation metrics underpin a constructive setup heading into potential earnings-related volatility.

Technical Analysis
FDX is exhibiting solid bullish momentum, trading comfortably above its rising 20-day, 50-day, and 200-day moving averages, a hallmark of a healthy and well-supported uptrend. The chart reflects a clear shift out of consolidation and into sustained higher highs and higher lows, underscoring improving trend strength. With $300 serving as our primary upside objective, last reached in December of last year, the technical setup remains favorable as long as price holds above its key moving averages in the wake of this week’s earnings event.

Fundamental Analysis
Fundamentally, FedEx screens as modestly undervalued relative to peers, with growth and profitability metrics broadly in line with industry norms.

• Forward PE Ratio: 15.61x vs. Industry Median 19.44x
• Expected EPS Growth: 9.33% vs. Industry Median 9.56%
• Expected Revenue Growth: 4.05% vs. Industry Median 4.16%
• Net Margins: 4.65% vs. Industry Median 5.20%

This valuation discount provides a favorable backdrop, particularly as operational efficiency initiatives and cyclical stabilization support earnings durability.

Options Trade
To align with our bullish outlook, consistent with the view we held into earnings, we look to establish a bullish put vertical spread by selling the FDX January 30, 2026 $280/$270 put vertical for a net credit of $3.88. This structure offers a maximum reward of $3.88 against a maximum risk of $6.12, resulting in a reward-to-risk ratio of approximately 0.63. The trade provides clearly defined downside risk and reward, allowing us to maintain bullish exposure while managing potential volatility that may be created by the earnings announcement.

FDX – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 FDX Jan 30 $280/$270 Put Vertical Spreads @ $3.88 Credit per Contract.

Total Risk: This trade has a max risk of $1,836 (3 Contracts x $612) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $612 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: 9/10

OptionsPlay Score: 91

Stop Loss: @ $7.76 (100% loss to value of premium)

View FDX 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 FDX Trade

Closing Trade

• FDX – 52% gain: Buy to Close 3 Contracts (or 100% of your Contracts) Jan 02 $265/$255 Put Vertical Spreads @ $1.94 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $582. We initially opened these 3 contracts on November 25 @ $4.07 Credit. Our gain, therefore, is $639.

AFRM Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
Affirm (AFRM) presents an attractive bearish opportunity as optimism around long-term growth continues to run ahead of the company’s underlying profitability profile and competitive positioning. While sentiment across consumer fintech has improved, AFRM remains vulnerable to valuation compression and execution risk as investors reassess the sustainability of growth in a more normalized credit and rate environment. With the stock already pricing in a favorable forward narrative, upside appears capped, creating a favorable setup for a defined-risk bearish options structure that benefits from consolidation or downside drift rather than requiring a sharp selloff.

Technical Analysis
From a technical perspective, AFRM has struggled to maintain momentum following prior rallies, with price repeatedly stalling near overhead resistance and failing to establish a sustained uptrend. Recent advances have occurred on diminishing momentum, leaving the stock susceptible to mean reversion as buyers lose conviction at higher levels. The broader structure suggests a range-bound to bearish bias, where rallies into resistance are more likely to fade than accelerate, favoring strategies that benefit from time decay and limited upside follow-through.

Fundamental Analysis
AFRM’s valuation reflects aggressive growth assumptions that leave little margin for error. While EPS and revenue growth expectations significantly outpace peers, the stock trades at nearly four times the industry valuation multiple despite operating with inferior margins, raising concerns around the sustainability of returns.

• Forward PE Ratio: 71.70x vs. Industry Median 22.53x
• Expected EPS Growth: 142.88% vs. Industry Median 10.99%
• Expected Revenue Growth: 25.14% vs. Industry Median 9.35%
• Net Margins: 6.74% vs. Industry Median 9.08%

Absent continued flawless execution, AFRM’s elevated multiple appears vulnerable, with downside risk driven by even modest growth or margin disappointments.

Options Trade
To express this view, consider selling the AFRM Jan 30, 2026 66/76 call vertical for approximately $4.02. This trade sells the 66 call and buys the 76 call, defining risk while positioning the trade to profit if AFRM remains below the lower strike through expiration. The structure offers maximum profit of $4.02 versus maximum risk of $5.98, resulting in a 0.67:1 reward-to-risk ratio. This setup is well-suited for a bearish-to-neutral outlook, as the long-dated expiration provides ample time for valuation pressure or technical weakness to emerge, while the capped call spread limits upside exposure and allows time decay to work in favor of the position.

AFRM – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 3 AFRM Jan 30 $66/$76 Call Vertical Spreads @ $4.02 Credit per Contract.

Total Risk: This trade has a max risk of $1,794 (3 Contracts 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 bearish trade on a stock that is expected to continue lower over the duration of this trade.

1M/6M Trends: Bearish/Mildly Bearish

Relative Strength: 4/10

OptionsPlay Score: 110

Stop Loss: @ $8.04 (100% loss to value of premium)

View AFRM 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 AFRM Trade

DailyPlay Portfolio Review

Our Trades

AKAM – 32 DTE

Bullish Debit Spread – Akamai Technologies, Inc. (AKAM) – We recently established this position, currently have a small gain, and plan to stay the course for now.

FDX – 18 DTE

Bullish Credit Spread – FedEx Corp (FDX) – We have a solid gain in this position and plan to stay the course for now. The company is set to report earnings on Thursday, December 18, after the close.

META – 4 DTE & 185 DTE

Bullish Diagonal Debit Spread – Meta Platforms, Inc. (META) – Our outlook supports a longer-term bullish approach. The position is currently showing a gain, and we plan to maintain it. We recently sold a short-term call against the longer-dated call to help reduce the overall cost basis.

NET – 32 DTE

Bullish Credit Spread – Cloudflare Inc (NET) – We recently established this position, currently have a small gain, and plan to stay the course for now.

NVDA – 11 DTE & 185 DTE

Bullish Diagonal Debit Spread – NVIDIA Corporation (NVDA) – We remain longer-term bullish following strong earnings and solid fundamentals. Despite a recent short-term bearish signal, we hedged modest losses by selling a shorter-dated call to collect premium, lower our cost basis, and maintain upside exposure.

NET Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
Cloudflare Inc. (NET) continues to show signs of vulnerability as its recent rebound occurs against a backdrop of stretched valuations and deteriorating profitability. While the stock has displayed strong multi-year growth, the current setup suggests limited upside relative to downside potential. With sentiment stabilizing after a failed breakout and sector momentum showing signs of fatigue, the risk/reward profile supports a bearish stance as the stock approaches prior resistance.

Technical Analysis
Cloudflare’s recent price action has weakened, with the 20-day moving average crossing below the 50-day in late November, marking the first time since May that the 20-day has traded beneath the 50-day and signaling a shift in short-term momentum toward a bearish bias. The 50-day moving average recently proved to be a resistance zone. Additionally, a Bearish Trend Following alert triggered on the OptionsPlay platform, indicating that the latest rebound occurred within a broader downtrend and may offer a favorable setup for downside continuation. With momentum indicators rolling over and price rejecting overhead resistance, the technical backdrop remains aligned with further weakness ahead.

Fundamental Analysis
Cloudflare’s long-term growth profile remains impressive, yet its valuation continues to exceed sector norms by a wide margin. Profitability challenges persist, and despite robust top-line expansion expectations, the firm is still contending with negative margins—leaving limited room for operational missteps. These factors, combined with elevated forward multiples, strengthen the case for downside risk as the market reassesses premium-priced growth.

• Forward PE Ratio: 177.15x vs. Industry Median 22.53x
• Expected EPS Growth: 29.13% vs. Industry Median 10.99%
• Expected Revenue Growth: 27.88% vs. Industry Median 9.35%
• Net Margins: -5.12% vs. Industry Median 9.08%

Options Trade
A defined-risk bearish position can be expressed through a bearish call vertical spread using the Jan 16, 2026 210/220 Call Vertical—selling the 210 call and buying the 220 call—for a net credit of $4.07. This establishes a maximum potential reward of $4.07 with defined risk capped at $5.93, creating a risk-reward profile of roughly 1:1.46. The trade reaches maximum profit if Cloudflare remains below the 210 strike at expiration, while losses are limited as long as the spread does not fully move in-the-money above 220.

NET – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 3 NET Jan 16 $210/$220 Call Vertical Spreads @ $4.07 Credit per Contract.

Total Risk: This trade has a max risk of $1,779 (3 Contracts x $593) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $593 to select the # contracts for your portfolio.

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

1M/6M Trends: Neutral/Neutral

Relative Strength: 7/10

OptionsPlay Score: 103

Stop Loss: @ $8.17 (100% loss to value of premium)

View NET 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 NET Trade

Closing Trade

• MU – 58% gain: Buy to Close 3 Contracts (or 100% of your Contracts) Jan 02 $230/$220 Put Vertical Spreads @ $1.97 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $591. We initially opened these 3 contracts on December 04 @ $4.67 Credit. Our gain, therefore, is $810.