DAL Bearish Opening Trade Signal

Investment Rationale

Delta Air Lines, Inc. (DAL) – Technically, DAL recently broke down from its trading range with strong momentum and is underperforming the S&P 500, providing an opportunity for further downside to our $50 target.

Fundamentally, DAL is modestly overvalued and trades at a slight discount to its industry, with a forward P/E ratio of 7.96x compared to the industry average of 8.96x. However, it is expected to grow at a slower pace than its peers, with an expected EPS growth of 12.54% versus the industry average of 16.12%. Its expected revenue growth is 3.12%, lagging behind the industry’s 5.76%, and its net margins stand at 5.61%, compared to the industry average of 1.97%. The latest quarter of margin compression is concerning for its future outlook and valuation.

DAL – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 8 Contracts DAL April 17 $60/$50 Put Vertical Spreads @ $2.33 Debit per Contract.

Total Risk: This trade has a max risk of $1,864 (8 Contracts x $233) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $233 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue its bearish trajectory.

1M/6M Trends: Bearish/Neutral

Relative Strength: 10/10

OptionsPlay Score: 175

Stop Loss: @ $1.17 (50% loss of premium)

View DAL 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 DAL Trade

Closing Trade

• PWR– 51% loss: Sell to Close 2 Contracts (or 100% of your Contracts) April 17 $290/$330 Call Vertical Spreads @ $6.70 Credit. DailyPlay Portfolio:  We initially opened this trade on Feb 14 @ $13.75. Our Loss on this trade therefore is $705 per Contract.

NVDA Bullish Opening Trade Signal

Investment Rationale

Technically, NVIDIA Corporation (NVDA) has pulled back to its 200-day moving average level. The stock price has been volatile lately amid news events regarding DeepSeek and, more recently, concerns over potential further tightening of U.S. export rules on the chip sector to restrict China’s advancement in AI. NVDA is set to announce earnings after the close on Wednesday, February 26.  

Fundamentally, NVDA is significantly undervalued. It trades at a premium relative to its peers, but its revenue and EPS growth metrics, along with its profitability, are far superior. Despite its premium valuation, there remains substantial upside potential. NVDA has a forward price-to-earnings ratio of 30.57 times compared to the industry average of 19.76 times. Its expected EPS growth is 64.37 percent, significantly higher than the industry average of 13.67 percent. Expected revenue growth stands at 57.38 percent versus 6.71 percent for the industry, and NVDA’s net margins are 55.69 percent compared to the industry average of 19.87 percent.

NVDA – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 4 Contracts NVDA March 7 $135/$145 Call Vertical Spreads @ $2.45 Debit per Contract.

Total Risk: This trade has a max risk of $980 (4 Contracts x $245) based on a hypothetical $100k portfolio risking 1% for this specific trade. We suggest risking only 1% of the value of your portfolio and divide it by $245 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that is expected to bounce higher based on the coming earnings report.

1M/6M Trends: Bearish/ Mildly Bearish

Relative Strength: 4/10

OptionsPlay Score: 109

Stop Loss: @ $1.23 (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 Trades

• AMGN– 88% gain: Sell to Close 1 Contract (or 100% of your Contracts) April 17 $275 Call @ $38.03 Credit. DailyPlay Portfolio: By closing this Contract, we will receive $3,803. We initially opening this contract on Feb 2 @ $20.23 Debit. Our gain on this trade is therefore $1,780.

• PEP– 79% gain: Buy to Close 5 Contracts (or 100% of your Contracts) March 28 $140/$135 Put Vertical Spreads @ $0.23 Debit. DailyPlay Portfolio: By closing all 5 Contracts, we will pay $115. We initially opened these 5 Contracts on Feb 13 @ $1.10 Credit. Our gain on this trade is therefore $435.

V Bullish Opening Trade Signal

Investment Rationale

Visa Inc. (V) has maintained strong upside momentum since breaking out of its trading range in mid-January, outperforming the S&P 500 and presenting an opportunity for continued gains.

Fundamentally, V is moderately undervalued and trades at a premium relative to its peers. However, with growth in line with its peers and industry-leading profitability, it still represents significant upside potential. V has a forward P/E ratio of 30.85x compared to the industry average of 17.45x. Its expected EPS growth is 12.74%, slightly below the industry average of 13.19%, while its expected revenue growth of 10.92% outpaces the industry average of 8.37%. V also maintains a strong net margin of 54.27%, significantly higher than the industry average of 20.83%.  

Visa’s latest earnings at the end of January highlight strong growth and innovation driving future gains. The company posted a 10% increase in net revenue and a 14% rise in EPS, driven by robust international expansion and the rapid adoption of real-time payments. Payments volume grew 9%, with US volume up 7% and international volume up 11%. Additionally, Visa announced a stock buyback in Q1, reinforcing its commitment to shareholder value.  

Despite macroeconomic challenges, Visa’s strong financials and continued investment in growth opportunities position it as a compelling long-term investment.

V – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 2 Contracts V April 4 $350/$335 Put Vertical Spreads @ $4.21 Credit per Contract.

Total Risk: This trade has a max risk of $2,158 (2 Contracts x $1,079) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $1,079 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: 10/10

OptionsPlay Score: 82

Stop Loss: @ $8.42 (100% loss to value of premium)

View V 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 V Trade

DailyPlay Portfolio Review

Our Trades

AMGN – 52 DTE

Bullish Long Call – Amgen Inc. (AMGN) –  The stock recently broke through resistance with strong momentum. The position is profitable, and we plan to hold steady for now.

BIDU – 39 DTE

Bullish Credit Spread – Baidu, Inc. (BIDU) – This position was established recently and is slightly profitable. We plan to hold steady for now.

KMI – 39 DTE

Bearish Long Put – Kinder Morgan Inc. (KMI) – Since establishing this position last week, there have been no significant changes, so we plan to hold for now.

LRCX – 25 DTE

Bullish Long Call – Lam Research Corporation (LRCX) – We recently established this position and plan to stay the course for now.

PEP – 32 DTE

Bullish Credit Spread, PepsiCo, Inc. (PEP) – The stock recently broke out from its trading range to the upside with strong momentum. The position is profitable, and we plan to hold for now.

PWR – 52 DTE

Bullish Debit Spread – Quanta Services, Inc. (PWR) – The company announced earnings last week, and the stock reacted negatively to the announcement. We are down on the position but will maintain for now.

AAPL Bearish Opening Trade Signal

Investment Rationale

As Apple Inc. (AAPL) approaches its all-time highs, a series of mounting challenges has emerged. The latest iPhone 16 has not met sales expectations, signaling a more selective consumer. Additionally, AAPL faces stiff competition in their singular bet on the future of augmented reality, where rivals are putting pressure on the future of Apple’s Vision Pro. Moreover, Apple’s venture into artificial intelligence has been lackluster, failing to match the innovation of competitors who are setting the standard in AI. Compounding these issues, the economic slowdown in China, a critical market for Apple, is dampening sales further. And with AAPL trading at a lofty 65% premium over its peers, it’s becoming increasingly untenable given an outlook that lacks the dynamism to justify such a premium. This puts AAPL in a spot of vulnerability, suggesting that a breakout to new all-time highs here is less likely.

If we look at the chart of AAPL, it has underperformed the S&P 500 since hitting a new all-time high in December and has continued to print a series of lower lows and lower highs. This suggests that the stock might be due for a correction, especially considering its position near the top of its trading range.

And if we look at the business, AAPL’s valuation is hard to justify, trading at an 65% premium relative to its peers, despite growth metrics that are only in line with the industry. While its superior profitability has historically justified a premium valuation, recent slowdown in revenues and EPS growth puts this at significant risk.

• Forward PE Ratio: 33x vs. Industry Median 20x
• Expected EPS Growth: 11% vs. Industry Median 10%
• Expected Revenue Growth: 6% vs. Industry Median 6%
• Net Margins: 24% vs. Industry Median 13%

Without an immediate catalyst on the horizon, my preference is to take a bearish to neutral outlook by harnessing options premiums by Selling an Apr 4, $245/260 Call Vertical @ $6.20 Credit.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 2 Contracts AAPL April 4 $245/$260 Call Vertical Spreads @ $6.20 Credit per Contract.

Total Risk: This trade has a max risk of $1,760 (2 Contracts x $880) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $880 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bearish trade on a stock that is expected pull back from recent highs.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 106

Stop Loss: @ $12.40 (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 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 AAPL Trade

Closing Trades

• GOOGL– 43% loss: Buy to Close 3 Contracts (or 100% of your Contracts) Feb 28 $195/$185 Put Vertical Spreads @ $7.45 Debit. DailyPlay Portfolio:  We initially received a $3.07 net credit when we opened these three contracts on Jan 24. Therefore, the total net debit paid to close our position is $4.38 ($7.45 – $3.07), which is the loss per contract, or $1,314 in total. The total amount we had at risk was $3,000, which puts the loss at 43% ($1,314 / $3,000) of the capital at risk.

• DXCM– 2% gain: Sell to Close 7 Contracts (or 100% of your Contracts) Feb 21 $88/$92 Call Vertical Spreads @ $1.53 Credit. DailyPlay Portfolio:  DailyPlay Portfolio: By closing all seven contracts, we will receive $1,071 ($1.53 × 700). After our adjustment to the position on February 12, our cost basis was $1.50 per contract, or $1,050 ($1.50 × 700). Our gain, therefore, is $0.03 per contract, or $21 ($0.03 × 700).

KMI Bearish Opening Trade Signal

Investment Rationale

Kinder Morgan Inc. (KMI) recently broke below its trading range and has rallied back to resistance, creating an attractive risk/reward opportunity for bearish exposure with a downside target of $22.

Fundamentally, KMI appears significantly overvalued. It trades at a forward P/E ratio of 20.74x, which is 30% higher than the industry median of 15.36x. While its expected EPS growth of 8.22% exceeds the industry average of 6.52%, and its revenue growth of 8.34% is higer than the industry’s 3.29%, its net margins of 17.31% remain relatively close to the industry average of 15.10%.

KMI – Daily

Trade Details

Strategy Details

Strategy: Long Put

Direction: Bearish Put

Details: Buy to Open 13 Contracts KMI April 4 $28 Puts @ $1.53 Debit per Contract.

Total Risk: This trade has a max risk of $1,989 (13 Contracts x $153) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $153 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 an area of resistance.

1M/6M Trends: Bearish/Neutral

Relative Strength: 9/10

OptionsPlay Score: 99

Stop Loss: @ $0.77 (50% loss of premium)

View KMI 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 KMI Trade

Closing Trade

• NEM– 51% gain: Sell to Close 5 Contracts (or 100% of your Contracts) Feb 28 $42 Calls @ $5.80 Credit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will receive $2,900. We initially opened these 5 Contracts on Feb 7 @ $3.85 Debit. Our gain, therefore, is $975 which is almost 1% gain on our Portfolio.

BIDU Bullish Opening Trade Signal

Investment Rationale

Baidu, Inc. (BIDU) recently broke out above resistance while outperforming the S&P 500 but pulled back following the company’s earnings announcement yesterday. It is now consolidating around the 90 level in a congested support area.

BIDU remains undervalued relative to its industry, despite growth and profitability metrics that are in line with sector averages. China’s latest deregulation efforts are expected to drive its tech and AI ambitions forward, positioning the country to compete more directly with the U.S. and enhancing shareholder value.

Fundamentally, BIDU is modestly undervalued. The company has a forward P/E ratio of 9.88x, significantly lower than the industry average of 20.89x. Its expected EPS growth is 10.88%, compared to 14.43% for the industry. Revenue growth is projected at 1.84%, while the industry average stands at 12.29%. However, BIDU maintains stronger profitability, with net margins of 15.81% versus the industry average of 7.89%.

BIDU – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 5 Contracts BIDU April 4 $87/$80 Put Vertical Spreads @ $2.83 Credit per Contract.

Total Risk: This trade has a max risk of $2,085 (5 Contracts x $417) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $417 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/Mildly Bullish

Relative Strength: 5/10

OptionsPlay Score: 105

Stop Loss: @ $5.66 (100% loss to value of premium)

View BIDU 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 BIDU Trade

Closing Trade

• IWM – 66% loss: Sell to Close 2 Contracts (or 100% of your Contracts) Feb 21 $225 Straddles @ $3.72 Credit. DailyPlay Portfolio:  By Closing both Contracts, we will receive $744. We initially opened these Contracts on Jan 17 @ $10.96 Debit. Our loss, therefore, is $724 per contract.

DailyPlay Portfolio Review

Our Trades

AMGN – 58 DTE

Bullish Long Call – Amgen Inc. (AMGN) –  The stock price has been volatile since the recent earnings announcement, the position is profitable and we plan to stay the course for now.

DXCM – 3 DTE

Bullish Long Calls – DexCom, Inc. (DXCM) – We recently sold an option to convert our long call position in DXCM into a bull call spread ahead of earnings. The company announced earnings last week, and following the report, the stock saw a price increase. After a few adjustments, our cost basis is now $1.50, and we are slightly profitable on the position. We hope the stock’s upside momentum continues from the earnings move, but with expiration approaching quickly, we plan to close the position sooner rather than later.

GOOGL – 10 DTE

Bullish Credit Spread – Alphabet Inc. (GOOGL) – The stock declined after Alphabet’s earnings call, where the company announced plans for a substantial increase in AI spending. With the position under pressure, we’ll be keeping a close watch at the start of the week.

IWM – 3 DTE

Bullish Long Straddle – We are closing this position today.

LRCX – 41 DTE

Bullish Long Call – Lam Research Corporation (LRCX) – We recently established this position and plan to stay the course for now.

NEM – 10 DTE

Bullish Long Call – Newmont Corporation (NEM) – We have a profit on this position and plan to stay the course for now. The company is set to report earnings on Thursday, February 20th, after market close. Implied volatility is creeping up, which benefits our long call position. We now have to decide whether to close before earnings to avoid the event risk or convert the position into a long call spread and hold through the report.

PEP – 38 DTE

Bullish Credit Spread – PepsiCo, Inc. (PEP) – This position was recently established, and with no significant changes, we plan to hold steady for now.

PWR – 58 DTE

Bullish Debit Spread – Quanta Services, Inc. (PWR) – With the position newly established and little movement since, we see no reason to adjust our approach at this time. The company is set to report earnings on Thursday, February 20, 2025, before the market opens.

PWR Bullish Opening Trade Signal

Investment Rationale

Quanta Services Inc. (PWR) has recently reached oversold conditions on both daily and weekly timeframes, showing signs of exhaustion that suggest a strong rally ahead, with a target of $360.

Fundamentally, PWR is significantly overvalued and trades at a premium compared to its peers, but its faster-than-expected growth rates and the increasing demand for its services in the buildout of AI-related infrastructure help justify its valuation. PWR has a forward price-to-earnings (PE) ratio of 30.55x, well above the industry average of 22.29x. However, its expected earnings per share (EPS) growth is 18.24%, compared to the industry average of 12.17%, and its expected revenue growth is 12.24%, far outpacing the industry’s 3.65%. While PWR’s net margins are lower at 3.54% versus the industry average of 8.99%, its growth potential and strategic positioning in AI infrastructure make it an attractive investment despite its premium valuation. The company is set to announce earnings on Thursday, February 20, 2025, before the market opens.

PWR – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 2 Contracts PWR April 17 $290/$330 Call Vertical Spreads @ $13.35 Debit per Contract.

Total Risk: This trade has a max risk of $2,670 (2 Contracts x $13.35) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $13.35 to select the # contracts for your portfolio.

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

1M/6M Trends: Bearish/Bearish

Relative Strength: 4/10

OptionsPlay Score: 111

Stop Loss: @ $6.68 (50% loss of premium)

View PWR 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 PWR Trade