Closing Trade

• ZM – 58% loss: Sell to Close 3 Contracts (or 100% of your Contracts) June 13 $80/$90 Call Vertical Spreads @ $1.97 Credit. 
  DailyPlay Portfolio:  By Closing 3 Contracts, we will be collecting $591. We adjusted this trade on May 20 and added $399 Credit bringing the total cost down to $1,410. Our loss, therefore, is $273 per contract.

ADBE Bullish Opening Trade Signal

Investment Rationale

Adobe Inc. (ADBE) presents a compelling bullish setup ahead of its upcoming earnings on June 12th. With shares recently regaining upward momentum and trading at a discount to peers despite comparable growth expectations, the stock is poised to outperform. Adobe remains a leader in creative and digital media software, and its subscription-based business model offers earnings visibility and margin stability. Heading into earnings, the risk/reward dynamic favors the bulls, particularly as the stock has started to outperform major indices like the S&P 500.

Technical Analysis:
ADBE recently broke out of a multi-month consolidation range, supported by accelerating momentum and strengthening relative performance. The stock’s rebound from key support, coupled with alignment above short-term moving averages and a rising RSI, points to continued upside potential. A decisive move above $415.70 would confirm a bullish trend reversal, though traders should remain cautious of overhead resistance at the 200-day moving average.

Fundamental Analysis:
Adobe is modestly undervalued relative to its peers, offering both growth and profitability at a discount. Despite industry headwinds in software valuations, Adobe’s consistent margin leadership and solid revenue growth underpin the bullish thesis:

• Forward PE Ratio: 20.02x vs. Industry Median 27.72x
  
• Expected EPS Growth: 11.83% vs. Industry Median 11.48%
  
• Expected Revenue Growth: 9.56% vs. Industry Median 9.36%
  
• Net Margins: 30.64% vs. Industry Median 9.80%
  

Options Trade:
A bull put vertical spread using the ADBE Jul 3, 2025 $410/$400 offers a compelling risk-defined opportunity ahead of earnings. The trade’s max profit can be achieved if ADBE holds above $410 at expiration. The strategy’s 0.80:1 reward-to-risk ratio is solid, especially given the higher probability of profit typically associated with bull put spreads. However, the June 12 earnings event introduces uncertainty that traders must manage within their position sizing and risk framework.

ADBE – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 ADBE July 03 $410/$400 Put Vertical Spreads @ $4.45 Credit per Contract.

Total Risk: This trade has a max risk of $1,665 (3 Contracts x $555) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $555 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/Neutral

Relative Strength: 3/10

OptionsPlay Score: 95

Stop Loss: @ $8.90 (100% loss to value of premium)

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 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 ADBE Trade

NVDA Bullish Trade Adjustment Signal

Investment Rationale

Adjustment Rationale:

We remain bullish on NVIDIA Corp. (NVDA) and continue to hold four NVDA June 20, 2025, 138/155 bull call vertical spreads in the Daily Play portfolio. NVDA recently announced earnings. The company’s strong earnings and guidance initially drove the stock higher, though the rally has stalled amid shifting market headlines. While the fundamentals remain strong and demand for semiconductor chips is solid, the position is currently at a slight loss. With the earnings catalyst behind us, we are reducing risk by rolling the short 155 calls down to the 145 strike, same expiration, collecting a net credit on the adjustment.

Adjustment Trade

Days to Expiration (DTE): 17

Buy to Close 4 NVDA Jun 20, 2025 155 Calls @ $0.33

Sell to Open 4 NVDA Jun 20, 2025 145 Calls @ $1.65

Mid: $1.32

Average Premium Received: $1.32 net credit

or $528 (400 x $1.32) for the adjustment trade

NVDA – Daily

Trade Details

Strategy Details

Strategy: Rolling a Short Call option down in strike

Direction: Resulting in a new Bullish Call Vertical Spread

Details: Buy to Close 4 NVDA Jun 20, 2025 155 Calls and Sell to Open 4 NVDA Jun 20, 2025 145 Calls @ $1.32

Total Risk: The resulting position has a maximum risk of $1,348 (1,876 – 528), calculated as the initial cost basis of the four spreads purchased ($1,876) minus the premium received from the adjustment ($528).

Trend Continuation Signal: This is a bullish trade on a stock that is expected to break out above its current trading range.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

Stop Loss: @ $1.69(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 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. 

DailyPlay Portfolio Review

Our Trades

AAPL – 46 DTE

Bearish Debit Spread – Apple Inc. (AAPL) – This trade has hovered around breakeven, fluctuating between modest gains and losses. Apple remains priced at a premium compared to its peers and continues to deal with unresolved concerns around the trade war and tariffs. With ample time left until expiration, we will continue to hold the position.

AMAT – 25 DTE

Bullish Credit Spread – Applied Materials Inc. (AMAT) – The company’s fundamentals remain strong, even as the semiconductor sector struggles to gain upward traction. The position is down, but we plan to hold steady at this point.

MU – 18 DTE

Bullish Credit Spread – Micron Technology Inc. (MU) – Our recently opened position shows a small profit at this stage. With Micron benefiting from growing demand for memory products and a solid outlook in semiconductor supply chains, we remain committed to holding the trade.

NVDA – 18 DTE

Bullish Debit Spread – Nvidia Corp. (NVDA) – Nvidia delivered a strong earnings report with solid guidance, initially pushing the stock higher. However, those gains have since faded as shifting headlines continue to weigh on sentiment. The company’s fundamentals and demand outlook remain intact, so we’re holding the position for now.

SCHW – 200 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – Our outlook remains positive, supported by strong company fundamentals and continued strength in both SCHW and the broader financial sector.

ZM – 11 DTE

Bullish Debit Spread – Zoom Communications Inc. (ZM) – In the last earnings report, Zoom beat estimates on both revenue and profit. Despite the solid results, the stock moved lower following the announcement. We finally saw some encouraging bullish movement at the end of last week and will remain in the trade for now, though time to expiration is quickly running out.

MU Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Micron Technology (MU) presents a compelling bullish opportunity as it continues to benefit from favorable macro trends in AI-driven memory demand and an improving semiconductor cycle. With earnings scheduled for June 25, 2025, we view the pre-earnings window as an ideal setup for a defined-risk, high-probability options play. The company has recently broken above key technical levels, signaling strong bullish momentum ahead of the catalyst. By selecting an options expiration date that precedes the earnings event, we aim to capitalize on the current trend while avoiding binary risk tied to the report.

Technical Analysis
MU has recently broken out of a multi-month consolidation zone, surging above its 200-day moving average near $92, now establishing that level as new support. The stock has reclaimed both its 20-day and 50-day moving averages, which are now trending upward and aligned in a bullish stack. Relative strength is notable, with MU outperforming the S&P 500 and the broader semiconductor sector. With the stock trading near $96.80, its momentum remains strong, and the path toward the $100 upside target appears technically achievable over time.

Fundamental Analysis
Micron trades at a considerable valuation discount while demonstrating superior growth and profitability metrics compared to its peers. This valuation gap combined with strong forward growth expectations reinforces the bullish case, particularly ahead of a potentially upbeat earnings report.

• Forward PE Ratio: 8.58x vs. Industry Median 22.84x
• Expected EPS Growth: 96.81% vs. Industry Median 16.50%
• Expected Revenue Growth: 22.31% vs. Industry Median 10.46%
• Net Margins: 14.92% vs. Industry Median 10.43%

Options Trade
Sell to open the MU June 20, 2025, 96/86 put vertical for a net credit of $2.96. This bull put spread profits if MU stays above $96 through expiration, offering a maximum reward of $296 with a defined risk of $704. With just 22 days until expiration and earnings scheduled for June 25, after the trade expires, this setup expresses a bullish view while avoiding earnings risk. The structure offers a high-probability trade setup with a decent risk/reward.

MU – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 MU June 20 $96/$86 Put Vertical Spreads @ $2.96 Credit per Contract.

Total Risk: This trade has a max risk of $2,112 (3 Contracts x $704) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $704 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to break out above its current trading range.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 87

Stop Loss: @ $5.92 (100% loss to value of premium)

View MU 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 MU Trade

• TTWO – 15% loss: Sell to Close 2 Contracts (or 100% of your Contracts) June 6 $230/$220 Put Vertical Spreads @ $3.45 Credit. DailyPlay Portfolio:  By Closing both Contracts, we will receive $6.90. We initially opened these 2 contracts on May 15 @ $4.05 Debit. Our loss, therefore, is $60 per contract.
• SPY – 92% loss: Sell to Close 18 Contracts (or 100% of your Contracts) May 30 $570/$560 Put Vertical Spreads @ $0.17 Credit. DailyPlay Portfolio:  By Closing all 18 Contracts, we will receive $306. We initially opened these 18 contracts on May 23 @ $2.09 Debit. Our loss, therefore, is $192 per contract.

NVDA Bullish Opening Trade Signal

Investment Rationale

Investment Thesis:
NVIDIA Corporation (NVDA) heads into today’s earnings report after the close with a constructive technical setup. As a leader in accelerated computing, NVDA is well positioned to capitalize on growing demand for generative AI, hyperscale data centers, and advanced GPU architectures. The upcoming report could serve as a catalyst for renewed upside, especially as sentiment across the semiconductor space has improved following recent market-friendly headlines. With the stock regaining positive momentum and expectations reset after a period of consolidation, a strong earnings print could reignite the bull case for NVDA.

Technical Analysis:
NVDA recently reclaimed key moving averages, with the price moving above the 200-day ($116.64), 50-day ($124.12), and 20-day ($136.96) levels, suggesting a potential trend reversal. A sustained break above $140 would reinforce the bullish case and open the door for a move toward previous highs near $150. Recent trading has been marked by elevated volume, reflecting strong market interest and growing conviction behind the move.

Fundamental Analysis:
NVIDIA continues to deliver industry-leading growth and profitability, supported by secular demand tailwinds in AI and cloud computing:

• Forward PE Ratio: 31.35x vs. Industry Median 25.82x
• Expected EPS Growth: 27.81% vs. Industry Median 11.18%
• Expected Revenue Growth: 29.73% vs. Industry Median 11.62%
• Net Margins: 55.85% vs. Industry Median 5.98%

These metrics highlight NVDA’s superior growth profile and operating leverage, with gross margins and cash generation far exceeding peers. While valuation is elevated, the premium appears justified given the company’s dominant position in one of the market’s most transformative technology cycles.

Options Trade:
Consider a bullish call vertical spread for NVDA earnings, balancing upside potential with defined risk. Buy the NVDA Jun 20, 2025, 138/155 call vertical spread. The maximum reward is achieved if NVDA closes above $155 at expiration. The $138 strike is just above current levels, while the $155 strike gives the stock room to run if the earnings a breakout toward recent resistance highs, offering an attractive 2.78:1 reward-to-risk ratio. With only 24 days to expiration, this structure capitalizes on a sharp post-earnings move while limiting losses if the report disappoints.

NVDA – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 4 NVDA June 20 $138/$155 Call Vertical Spreads @ $4.50 Debit per Contract.

Total Risk: This trade has a max risk of $1,800 (4 Contracts x $450) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $450 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to break out above its current trading range.

1M/6M Trends: Bullish/Bullish

Relative Strength: 7/10

OptionsPlay Score: 104

Stop Loss: @ $2.25 (50% loss of premium)

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 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 NVDA Trade

Closing Trade

• INTU – 102% gain: Sell to Close 1 Contract (or 100% of your Contracts) June 13 $665/$715 Call Vertical Spreads @ $39.30 Credit. DailyPlay Portfolio:  By Closing this Contract, we will receive $3,930. We initially opened this contract on May 16 @ $19.50 Debit. Our gain, therefore, is $1,980.

DailyPlay Portfolio Review

Our Trades

AAPL – 52 DTE

Bearish Debit Spread – Apple Inc. (AAPL) – We recently entered this position, and the latest headlines about Apple have added some downside pressure. The trade is currently profitable, and we plan to maintain it for now.

AMAT – 31 DTE

The underlying fundamentals in AMAT remain solid. There has been general weakness recently in the semiconductor sector. Despite being down, we’re holding steady.

INTU – 17 DTE

We are closing the position today.

SCHW – 206 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – Our outlook remains positive, supported by strong company fundamentals and continued strength in both SCHW and the broader financial sector.

SPY – 3 DTE

Bearish Debit Spread – SPDR S&P 500 ETF (SPY) – The position is currently down. With only a few days left in the contracts, we’ll need to see bearish momentum build early in the week to justify staying in the position.

TTWO – 10 DTE

Bearish Debit Spread – Take-Two Interactive Software, Inc. (TTWO) – The company’s recent earnings release led to weakness in the stock. We are in a profitable position and intend to stay the course for now, but expiration is approaching.

ZM – 17 DTE

Bullish Debit Spread – Zoom Communications Inc. (ZM) – Overall, Zoom’s earnings last week were solid, exceeding expectations with improved guidance. Despite beating on the top and bottom line, the stock moved lower, and our position is currently down. We’ll need to see bullish momentum build early in the week to justify holding the trade.

SPY Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
While the longer-term uptrend in the S&P 500 remains intact, recent price action in SPX suggests a loss of short-term momentum that could lead to a tactical pullback. The index has fully recovered from the recent tariff-driven correction, but its advance stalled after reaching a new high of 5,963.60 on May 19. Since then, a 2% retreat to 5,842.01 by May 22 has emerged, signaling potential exhaustion. With elevated valuations and signs of softening economic data, the risk of a near-term retracement is increasing as the market digests recent gains.

Technical Analysis
The SPY, which is the ETF that tracks the S&P 500 index, has rallied above its 20-day (around $584.42), 50-day (around $569.03), and 200-day (around $569.07) moving averages. Price action has flattened near a recently established resistance level, and the recent slip from the highs aligns with weakening breadth and potential bearish divergence in momentum indicators. A decisive move below these moving averages could accelerate a move lower toward the $560 support range. This technical picture suggests a potential short-term pause or pullback within the broader uptrend.

Fundamental Analysis
Fundamental risks are skewed to the downside as equity valuations remain stretched and macroeconomic uncertainties mount. While earnings season provided a temporary lift, underlying metrics are beginning to deteriorate, and forward expectations may not fully reflect emerging risks. As we reach the tail end of quarterly earnings, most Wall Street forecasts place the S&P 500 forward PE ratio around 21x, above the five-year average of approximately 19.5x:

• SPX Forward PE Ratio: 21.1x vs. Five-Year Average 19.5x

Additionally, higher credit card delinquencies, and unresolved supply chain risks related to China pose further downside catalysts. Even if geopolitical and tariff issues resolve quickly, supply chain normalization lags could lead to temporary shocks and margin compression across sectors.

Options Trade
To position for a short-term pullback while defining risk, consider buying the SPY May 30, 2025 570/560 bear put vertical spread for $1.15. This trade involves buying the 570 put and selling the 560 put, resulting in a $115 debit per spread with a maximum profit potential of $885. The setup provides a favorable risk/reward ratio of over 7.7:1 and benefits from a move toward the $560 area of support. With only eight days to expiration, this is a high-conviction, short-dated play on a tactical decline, leveraging short-term weakness without over-committing capital.

SPY – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 18 SPY May 30 $570/$560 Put Vertical Spreads @ $1.15 Debit per Contract.

Total Risk: This trade has a max risk of $2,070 (18 Contracts x $115) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $115 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bearish trade on a stock that is expected to continue lower off a recent area of resistance.

1M/6M Trends: Bullish/Bullish

Relative Strength: 6/10

OptionsPlay Score: 27

Stop Loss: @ $0.58 (50% loss of premium)

View SPY 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 SPY Trade

AAPL Bearish Opening Trade Signal

Investment Rationale

Apple Inc. (AAPL) is beginning to show technical and valuation vulnerabilities that make it an attractive candidate for a bearish trend-following setup. The stock has struggled to regain its prior uptrend and now faces macro headwinds, decelerating growth, and a challenging valuation profile. While the company remains fundamentally strong, its premium pricing and lack of near-term growth catalysts create a scenario where downside exposure is warranted, especially if broader market weakness persists.

AAPL has recently broken down from a multi-month consolidation range and failed to reclaim its 200-day moving average. The stock’s rally into the $210–$215 zone is losing momentum, stalling just below key resistance from its downward-sloping 50-day and 200-day moving averages. With price struggling to sustain upward momentum, the technical setup suggests a likely continuation lower, targeting the $170–$175 support zone.

AAPL’s valuation remains stretched relative to its growth profile, reflecting investor optimism that may not be supported by fundamentals over the next several quarters. While profitability remains high, the company’s growth metrics are lagging behind sector averages, calling into question the justification for its elevated PE ratio.

• Forward PE Ratio: 29.47x vs. Industry Median 19.42x
• Expected EPS Growth: 8.30% vs. Industry Median 11.04%
• Expected Revenue Growth: 5.31% vs. Industry Median 5.76%
• Net Margins: 24.30% vs. Industry Median 8.78%

Buy the AAPL Jul 18, 2025 $205/$180 Put Vertical for $7.50 to express a bearish view with defined risk. This spread profits if AAPL trades below $197.50 at expiration, with a breakeven near recent support. The slightly in-the-money structure boosts delta exposure while capping risk, delivering a 2.3:1 reward-to-risk ratio if AAPL reaches the $170 downside target.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 3 AAPL July 18 $205/$180 Put Vertical Spreads @ $7.50 Debit per Contract.

Total Risk: This trade has a max risk of $2,250 (3 Contracts x $750) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $750 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue lower off a recent area of resistance.

1M/6M Trends: Bearish/Bearish

Relative Strength: 3/10

OptionsPlay Score: 147

Stop Loss: @ $3.75 (50% loss 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

AMAT Bullish Opening Trade Signal

Investment Rationale

Applied Materials (AMAT) offers a compelling bullish setup driven by structural demand tailwinds in the semiconductor equipment space and strong capital return policies. The company’s March announcement of a $10 billion share repurchase authorization and a 15% dividend increase underscores management’s confidence in long-term cash flow visibility and balance sheet strength. Although shares sold off sharply following the Q2 2025 earnings report, despite an EPS beat of $2.39 vs. $2.31 expected, this reaction appears driven by short-term concerns over China-related headwinds rather than a deterioration in core fundamentals. The post-earnings weakness presents an opportunity to enter a high-quality name at a relative discount.

Shares of AMAT have recently broken out above the 50-day and 20-day moving averages, signaling renewed buying interest after a multi-month downtrend. The stock is currently consolidating just under the 200-day moving average (~$174), which now serves as the next key resistance level. Price action has built a higher low formation since the April bottom, suggesting improving trend structure. A close above $174 would mark a bullish continuation signal, while the $159.75 area represents nearby support from short-term moving averages and the April breakout zone.

Despite slower-than-average top-line growth, AMAT remains fundamentally attractive due to strong profitability and relative valuation support:

• Forward PE Ratio: 17.80x vs. Industry Median 24.65x
• Expected EPS Growth: 8.43% vs. Industry Median 16.51%
• Expected Revenue Growth: 6.26% vs. Industry Median 10.46%
• Net Margins: 24.06% vs. Industry Median 10.43%

Set up a neutral-to-bullish trade on AMAT with a June 27, 2025 expiration, using a bull call spread alongside selling a $165 put and buying a $155 put. With 37 days remaining, this trade profits if AMAT remains above $165, leveraging a 0.58 risk-reward ratio. It’s an effective way to benefit from a stable price or a rebound to the 200-day moving average after an earnings-related drop.

AMAT – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 AMAT June 27 $165/$155 Put Vertical Spreads @ $3.70 Credit per Contract.

Total Risk: This trade has a max risk of $1,890 (3 Contract x $630) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $630 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/Mildly Bullish

Relative Strength: 7/10

OptionsPlay Score: 91

Stop Loss: @ $7.40 (100% loss to value of premium)

View AMAT 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 AMAT Trade