Closing Trade

• SPOT – 54% gain: Buy to Close 1 Contract (or 100% of your Contracts) Oct 24 $705/$735 Call Vertical Spreads @ $6.12 Debit. DailyPlay Portfolio:  By Closing 1 Contract, we will be paying $612. We initially opened this contract on September 11 @ $13.43 Credit. Our gain, therefore, is $731.

C Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Citigroup Inc. (C) presents an attractive opportunity for bullish positioning as the stock consolidates near support following a strong multi-month uptrend. Citigroup, Inc. is set to report earnings this Tuesday, Oct 14th, before the open. Despite near-term volatility tied to upcoming earnings, the intermediate trend remains constructive, underpinned by improving fundamentals and relative strength versus the broader financial sector. With valuation metrics still below peers and market sentiment recovering, this pullback offers traders a compelling entry point for upside exposure into year-end.

Technical Analysis
Citi recently broke above its $97 resistance level and has since retested that zone as new support, confirming the breakout. The alignment of the 20-day, 50-day, and 200-day moving averages in bullish order highlights strong trend structure. Price action remains constructive despite a brief consolidation, with RSI having reset from overbought to neutral levels, allowing room for another push higher. A sustained hold above the 20-day moving average keeps the bullish setup intact, with earnings serving as a potential catalyst for a measured move toward $135 over the intermediate term.

Fundamental Analysis
Citigroup remains modestly undervalued relative to peers, trading at a discount on a price-to-book (PB) basis that highlights its potential for multiple expansion as profitability improves. The company’s PB ratio of 0.91x suggests investors have yet to fully price in its ongoing operational turnaround and efficiency gains. With strong expected EPS growth and a renewed focus on streamlining business lines, Citigroup is positioned to close the valuation gap with peers. Furthermore, its solid balance sheet and consistent dividend yield strengthen its appeal in a sustained higher-rate environment.

• PB Ratio: 0.91x vs. Industry Median 1.37x
• Expected EPS Growth: 23.41% vs. Industry Median 10.90%
• Expected Revenue Growth: 3.52% vs. Industry Median 5.73%
• Net Margins: 17.06% vs. Industry Median 26.86%

Options Trade
The proposed trade is a bull call vertical, established by buying the Oct 31, 2025 $95 call and selling the $105 call for a net debit of $3.65. This defined-risk strategy provides targeted upside participation while capping downside exposure ahead of earnings. The maximum potential profit is $635 if C closes above $105 at expiration, offering a risk/reward ratio of roughly 1.74:1. The setup seeks to capitalize on a rebound from current support within the broader bullish trend, using moderate leverage to express directional conviction while managing time decay and volatility around the earnings event.

C – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 5 C Oct 31 $95/$105 Call Vertical Spreads @ $3.65 Debit per Contract.

Total Risk: This trade has a max risk of $1,825 (5 Contracts x $365) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $365 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: Bearish/Neutral

Relative Strength: 9/10

OptionsPlay Score: 107

Stop Loss: @ $1.83 (50% loss of premium)

View C 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 C Trade

FDX Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
FedEx Corp. (FDX) presents a compelling bullish setup as it benefits from operational efficiency improvements, stable pricing, and resilient e-commerce-driven volumes despite macroeconomic headwinds. The company’s ongoing cost optimization initiatives and strategic capital allocation are positioning it for margin expansion and earnings stability through FY2025. With the transportation sector showing early signs of cyclical recovery, FedEx’s discounted valuation relative to peers offers an attractive entry point for investors seeking exposure to a potential logistics rebound. Near-term consolidation above key technical support strengthens the case for a continued rally toward the $275 price target.

Technical Analysis
FDX has broken decisively above the $240 resistance, backed by strengthening momentum and a bullish short-term moving average crossover. Price action remains constructive, with the stock holding above key moving averages and RSI trending firmly near 60. Maintaining traction above $240 would confirm trend continuation and set up an upside move toward $260–$275.

Fundamental Analysis
FedEx’s fundamentals underscore a valuation disconnect versus peers, despite growth and profitability metrics that remain highly competitive. The company’s disciplined cost control and network optimization initiatives continue to enhance earnings visibility and free cash flow generation.

• Forward PE Ratio: 13.57x vs. Industry Median 17.27x
• Expected EPS Growth: 9.30% vs. Industry Median 9.53%
• Expected Revenue Growth: 4.03% vs. Industry Median 3.97%
• Net Margins: 4.65% vs. Industry Median 5.71%

This valuation discount, combined with FedEx’s improving efficiency and moderate revenue growth outlook, positions the stock as substantially undervalued within the transportation group.

Options Trade
To express a bullish outlook with defined risk, consider selling the FDX Nov 21, 2025 $240/$230 Put Vertical Spread for a net credit of $3.67. The position profits if FDX remains above $240 at expiration, generating a maximum potential reward of $367 against a maximum risk of $633. This setup offers an attractive return on risk of approximately 58% over the holding period. The $240 short strike sits near established support, positioning the trade to benefit from continued strength while preserving downside protection.

FDX – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 FDX Nov 21 $240/$230 Put Vertical Spreads @ $3.67 Credit per Contract.

Total Risk: This trade has a max risk of $1,899 (3 Contracts x $633) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $633 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: 6/10

OptionsPlay Score: 92

Stop Loss: @ $7.34 (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

META Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Meta Platforms (META) presents a compelling bullish setup as the stock consolidates near prior breakout levels following a year of strong relative performance. Despite the recent market-wide pullback in large-cap technology, META remains well-positioned through its dominance in digital advertising and accelerating growth in AI-driven monetization. The upcoming October 29 earnings announcement—scheduled before the trade’s expiration—acts as a potential upside catalyst, with continued efficiency gains and margin expansion supporting a long-term target near $900.

Technical Analysis
META has retraced modestly after a strong advance earlier this year, finding firm support near the $700 level, which aligns with its prior breakout zone from the summer. The stock continues to trade comfortably above its 200-day moving average around $667, confirming the prevailing long-term uptrend despite recent volatility. Meanwhile, the 20-day and 50-day moving averages have begun to stabilize, suggesting a period of consolidation that may precede the next upward move.

Fundamental Analysis
META’s valuation remains compelling given its superior profitability and growth relative to peers. Despite trading at a modest premium to the sector, its expanding margins and strong top-line momentum highlight the strength of its business model and future cash flow potential.

• Forward PE Ratio: 23.79x vs. Industry Median 21.56x
• Expected EPS Growth:  11.57% vs. Industry Median 14.25%
• Expected Revenue Growth: 16.33% vs. Industry Median 12.95%
• Net Margins: 39.99% vs. Industry Median 3.98%

Options Trade
The proposed trade is a bullish put vertical spread, selling the META Nov 21, 2025 710/685 put spread for a credit of $11.10. This position profits if META remains above $710 at expiration, collecting a maximum reward of $1,110 against a defined risk of $1,390. With the earnings event occurring before expiration, implied volatility is elevated, enhancing the credit received. The structure provides a favorable risk/reward ratio of 1:1.25, allowing traders to express a bullish stance while maintaining a defined downside if META experiences temporary post-earnings weakness.

META – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 1 META Nov 21 $710/$685 Put Vertical Spreads @ $11.10 Credit per Contract.

Total Risk: This trade has a max risk of $1,390 (1 Contract x $1,390) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,390 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: Bearish/Neutral

Relative Strength: 7/10

OptionsPlay Score: 96

Stop Loss: @ $22.20 (100% loss to value 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 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 META Trade

DailyPlay Portfolio Review

Our Trades

COST – 18 DTE

Bearish Debit Spread – Costco Wholesale Corporation (COST) – The position remains profitable, with continued downside momentum last week driven by a mixed consumer environment and renewed tariff concerns. We plan to maintain the position for now.

GS – 102 DTE

Bullish Diagonal Debit Spread – Goldman Sachs Group, Inc. (GS) – We maintain a longer-term bullish outlook and plan to continue holding this position. To reduce the cost basis, we sold a short-term out-of-the-money call that expired last week, and the setup remains favorable.

KR – 32 DTE

Bearish Credit Spread – The Kroger Co. (KR) – We recently established this position and we plan to stay the course for now.

PM – 25 DTE

Bearish Put Debit Spread – Philip Morris International Inc. (PM) – This newly opened and profitable position continued to trend lower last week, reinforcing our bearish outlook. We plan to keep the position in place for now.

SCHW – 25 DTE & 102 DTE

Bullish Diagonal Debit Spread – Charles Schwab Corp. (SCHW) – The outlook remains unchanged from last week. We continue to hold a bullish view on Schwab. After realizing gains from our initial long call, we rolled into a higher strike call with a later expiration. To reduce the cost basis, we recently sold a short-term OTM call against the long position.

SPOT – 18 DTE

Bearish Credit Spread – Spotify Technology (SPOT) – We recently established this position, and it is currently showing a gain. Bearish momentum is building, and with plenty of time until expiration, we plan to stay the course for now.

Closing Trade

• MU – 72% gain: Buy to Close 3 Contracts (or 100% of your Contracts) Nov 07 $155/$145 Put Vertical Spreads @ $1.22 Debit. DailyPlay Portfolio:  By Closing 3 Contracts, we will be paying $366. We initially opened these 3 contracts on September 26 @ $4.32 Credit. Our gain, therefore, is $930.
  
• TFC – 43% loss: Sell to Close 8 Contracts (or 100% of your Contracts) Oct 17 $45/$50 Call Vertical Spreads @ $1.30 Credit. DailyPlay Portfolio:  By Closing 8 Contracts, we will be collecting $1,040. We initially opened these 8 contracts on September 03 @ $2.30 Debit. Our loss, therefore, is $100 per contract.

KR Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
Kroger Co. (KR) may screen attractively on valuation, but the stock is increasingly shaping up as a value trap. Weak growth expectations, thin margins, and underperformance relative to industry peers reinforce the case for a bearish stance. The current environment offers a timely entry for traders looking to take advantage of the stock’s deteriorating momentum.

Technical Analysis
Price action confirms the bearish bias, with KR recently breaking below its 200-day moving average after the 20-day crossed beneath it, signaling weakening momentum. Notably, inside the OptionsPlay platform, a “CCI Rally in Bearish Trend” alert was generated yesterday, highlighting that while the stock remains in a bearish trend, a short-term rally has occurred, a solid entry point for a bearish trade. KR currently trades below both the 50-day and 200-day moving averages, with each trending lower and reinforcing the negative technical structure. The bounce stalled near the 50-day moving average, suggesting sellers are regaining control. With RSI at 45, momentum is neutral but lacks signs of reversal, leaving room for continued downside pressure.

Fundamental Analysis
On the surface, Kroger’s discounted valuation might appear compelling, but the underlying fundamentals show why the stock remains vulnerable. Slower growth, margin compression, and below-median profitability highlight a business under pressure. This disconnect reinforces the idea that KR is cheap for a reason, supporting the bearish view.

• Forward PE Ratio: 12.65x vs. Industry Median 17.24x
• Expected EPS Growth: 7.78% vs. Industry Median 9.86%
• Expected Revenue Growth: 2.20% vs. Industry Median 2.20%
• Net Margins: 1.86% vs. Industry Median 2.25%

Options Trade
A bearish position can be expressed with a KR Nov 7, 2025, $67/$70 Call Credit Spread at a net credit of $1.02. This trade risks $198 to make a maximum profit of $102, offering a 51.5% return on risk if KR stays at or below $67 at expiration. Selling the $67 strike call while buying the $70 call caps the upside exposure while generating income from the premium.

KR – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 10 KR Nov 07 $67/$70 Call Vertical Spreads @ $1.02 Credit per Contract.

Total Risk: This trade has a max risk of $1,980 (10 Contracts x $198) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $198 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/Bearish

Relative Strength: 2/10

OptionsPlay Score: 95

Stop Loss: @ $2.04 (100% loss to value of premium)

View KR 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 KR Trade

SCHW Bullish Trade Adjustment Signal

Investment Rationale

Adjustment Rationale:

We continue to hold a positive outlook on Schwab, while remaining bullish but cautious in the short term given the risks tied to the recent government shutdown. After our initial long call, we locked in gains and rolled into a higher strike call with a later expiration. Today, we are selling calls to reduce risk in the near term. Its valuation metrics suggest relative attractiveness amid robust growth projections. $SCHW stands out with attractive multiples, steady growth, and momentum. Supported by consistent earnings beats over the last four quarters, Charles Schwab Corporation is set to report Q3 earnings on Thursday, October 16th, before the open.

Adjustment Trade:

SCHW @ $95.47
Days to Expiration (DTE): 30
Sell to Open 1 SCHW Oct 31, 2025 104 Call @ $0.85
Mid: $0.85
Premium Received: $85.00 per call option sold
or $85 total adjustment in the cost basis for the position.

The total risk for the new position is $1,450 (original cost basis) minus $85 (net credit from the adjustment), resulting in a revised cost basis of $1,365.

Resulting Position:
Long 1 SCHW Jan 16, 2026 87.5 Call
Short 1 SCHW Oct 31, 2025 104 Call 
New cost Basis and total risk of $1,365

SCHW – Daily

Trade Details

Strategy Details

Strategy: Short Call

Direction: Resulting in a new Bullish Diagonal Spread

Details: Sell to Open 1 SCHW Oct 31 $104 Call @ $0.85 Credit.

Total Risk: The resulting position has a maximum risk of $1,365 (1,450-85), calculated as the initial cost basis of the long call ($1,450) minus the premium received from the adjustment ($85).

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

1M/6M Trends: Mildly Bullish/Neutral

Relative Strength: 8/10

Stop Loss: @ $6.83 (50% loss of premium)

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. 

Closing Trade

• CZR – 78% loss: Buy to Close 9 Contracts (or 100% of your Contracts) Oct 17 $26/$29 Call Vertical Spreads @ $1.58 Debit. DailyPlay Portfolio:  By Closing 9 Contracts, we will be paying $1,422. We initially opened these 9 contracts on September 23 @ $0.89 Credit. Our loss, therefore, is $69 per contract.
• GLD – 88% loss: Sell to Close 5 Contracts (or 100% of your Contracts) Oct 03 $334/$337/$345 Put Butterfly Spreads @ $0.42 Credit. DailyPlay Portfolio:  By Closing 5 Contracts, we will be collecting $210. We initially opened these 5 contracts on September 18 @ $3.56 Debit. Our loss, therefore, is $314 per contract.

DailyPlay Portfolio Review

Our Trades

COST – 25 DTE

Bearish Debit Spread – Costco Wholesale Corporation (COST) – The trade is currently profitable. Costco’s fourth quarter report showed US same-store sales fell short of forecasts, pressured by a mixed consumer backdrop and tariff concerns. We intend to hold the position at this time.

CZR – 18 DTE

Spread – Caesars Entertainment, Inc. (CZR) – The trade is currently showing a loss. We are not yet at the stop-loss level, but bearish momentum needs to build to justify staying in the position. The stock showed upside movement last week, though the fundamentals remain weak.

GLD – 4 DTE

Bearish Butterfly – SPDR Gold Shares (GLD) – The outlook remains the same as last week. If you have not closed the position yet, we will take the same approach this week. We maintain a neutral to bearish stance on GLD. With expiration approaching and the position currently showing a loss, it is reasonable to exit at any time. For now, we will hold and be prepared to close early in the week. The strategy benefits if GLD moves to 337, the middle strike of the butterfly, or lower. Monitor the position closely and close during the day if an opportunity arises to lock in gains or if the stop loss level is reached. Expect profit and loss to remain volatile with expiration near.

GS – 4 DTE & 109 DTE

Bullish Diagonal Debit Spread – Goldman Sachs Group, Inc. (GS) – We maintain a longer-term bullish outlook and plan to continue holding this position. To reduce the cost basis, we sold a short-term OTM call against the long position, and with expiration approaching on the short call, the setup remains favorable.

MU – 39 DTE

Bullish Credit Spread – Micron Technology, Inc. (MU) – We recently established this position, it is currently showing a gain, and we plan to stay the course for now.

PM – 32 DTE

Bearish Put Debit Spread – Philip Morris International Inc. (PM) – We recently established this position, it is showing a slight loss, and we plan to stay the course for now.

SCHW – 109 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – The outlook remains the same as last week. We maintain our bullish view on Schwab. After our initial long call, we captured the gain and rolled into a higher strike call with a later expiration. We may sell calls to reduce risk if we get an appropriate move to the upside.

SPOT – 25 DTE

Bearish Credit Spread – Spotify Technology (SPOT) – We recently established this position, and it is currently showing a gain. Bearish momentum is building, and with plenty of time until expiration, we plan to stay the course for now.

TFC – 18 DTE

Bullish Debit Spread – Truist Financial Corporation (TFC) – The position is showing a loss, but we plan to stay the course for now and keep a close eye on it as expiration approaches.