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.

MU Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Micron Technology (MU) delivered a strong Q4 FY2024 earnings report that significantly exceeded expectations, reinforcing the view that the company is well-positioned to capitalize on secular growth trends in AI and data center demand. Revenue surged both sequentially and year-over-year, marking a decisive turnaround in the memory cycle. The return to profitability, coupled with strong balance sheet positioning, highlights Micron’s ability to weather cyclical volatility while benefiting from structural growth drivers. With shares recently breaking out to multi-year highs, MU presents a compelling opportunity for continued upside participation in the semiconductor industry.

Technical Analysis
MU’s price action showed strong bullish momentum heading into earnings, and while the stock has retraced modestly afterward, it continues to hold firmly above all major moving averages. The 20-day and 50-day averages remain in clear uptrends and sit well above the 200-day, reinforcing the strength of the longer-term move. The pullback from the $170 area looks constructive, allowing the stock to consolidate gains within a solid uptrend. Support is now defined near $156, and a decisive break above recent highs could set the stage for an advance toward the $175 zone.

Fundamental Analysis
Micron’s latest results demonstrate its undervaluation relative to peers despite superior growth and profitability metrics. Strength in data center and NAND demand, driven by AI adoption, underpins forward growth visibility, while the company’s balance sheet supports ongoing dividends and reinvestment. The stock remains substantially discounted on earnings multiples, suggesting further rerating potential.

• Forward PE Ratio: 12.19x vs. Industry Median 23.11x
• Expected EPS Growth: 17.88% vs. Industry Median 17.39%
• Expected Revenue Growth: 12.82% vs. Industry Median 10.87%
• Net Margins: 22.85% vs. Industry Median 11.78%

Options Trade
A bullish trade idea is selling the MU Nov 7, 2025, $155/$145 put vertical spread for a $4.32 credit. This trade collects $432 in premium while capping risk at $568, producing a favorable risk/reward profile of about 0.76 to 1. The breakeven sits at $150.68, allowing the position to work as long as MU stays above that level or continues higher.

MU – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 MU Nov 07 $155/$145 Put Vertical Spreads @ $4.32 Credit per Contract.

Total Risk: This trade has a max risk of $1,704 (3 Contracts x $568) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $568 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: 10/10

OptionsPlay Score: 99

Stop Loss: @ $8.64 (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

COST Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
Costco (COST) has been highlighted in this week’s Earnings Navigator as a stock to watch ahead of its fiscal fourth-quarter results, set to be released after today’s close. While the company’s long-term fundamentals remain strong and analysts argue that its results are sustainable, investors should be mindful of the near-term risks. Growth metrics earlier this year hinted at deceleration, and with Costco trading at an elevated valuation relative to its peers, the stock could be vulnerable to downside pressure if earnings disappoint. This setup creates an opportunity to position bearishly into earnings volatility with a defined-risk options strategy.

Technical Analysis
COST shares are trading near $945, stuck below key resistance levels with clear signs of weakening momentum. The stock remains just below the 20-day moving average and the 50-day moving average, both of which are trending lower. Meanwhile, the longer-term 200-day moving average at $975 continues to act as overhead resistance, reinforcing the bearish bias. In August, the 50-day moving average crossed below the 200-day moving average, forming a death cross, a bearish technical signal that often confirms a trend of sustained weakness. More recently, the stock rallied back to the 200-day moving average but failed to break out, and since that rejection has been carving a series of lower highs and lower lows. The RSI sits at 43.77, in neutral-to-weak territory, leaving room for additional downside pressure if earnings fail to provide a catalyst.

Fundamental Analysis
Costco’s premium valuation reflects investor confidence, but it also leaves little margin for error should earnings come in light of expectations. Relative to industry benchmarks, Costco trades at significantly higher multiples, which may amplify downside in the event of weaker guidance.

• Forward PE Ratio: 47.12x vs. Industry Median 18.43x
• Expected EPS Growth: 10.27% vs. Industry Median 10.27%
• Expected Revenue Growth: 7.61% vs. Industry Median 5.16%
• Net Margins: 2.92% vs. Industry Median 2.25%

Options Trade
To position for potential downside while maintaining defined risk, we recommend a 950/890 Bear Put Vertical Spread expiring Oct 24, 2025, entered at a net debit of $20.22 ($2,022 total). The trade risks $2,022 to achieve a maximum potential reward of $3,978 if shares close below $890 at expiry. Structuring the trade this way allows for a favorable risk/reward profile (nearly 2:1) while avoiding the high implied volatility premiums of outright long puts. This spread benefits from a decisive move lower following earnings but limits losses should Costco surprise to the upside.

COST – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 1 COST Oct 24 $950/$890 Put Vertical Spreads @ $20.22 Debit per Contract.

Total Risk: This trade has a max risk of $2,022 (1 Contract x $2,022) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $2,022 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: 3/10

OptionsPlay Score: 125

Stop Loss: @ $10.11 (50% loss of premium)

View COST 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 COST Trade

Closing Trade

• C – 44% gain: Buy to Close 5 Contracts (or 100% of your Contracts) Oct 31 $99/$93 Put Vertical Spreads @ $1.31 Debit. DailyPlay Portfolio:  By Closing 5 Contracts, we will be paying $655. We initially opened these 5 contracts on September 16 @ $2.34 Credit. Our gain, therefore, is $515.

CZR Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
Caesars Entertainment (CZR) faces a challenging macro and competitive backdrop that supports a bearish stance. Intensifying competition from online gambling platforms and rival casino operators is eroding market share at a time when consumer discretionary spending is under pressure from sticky inflation and softening labor market trends. These headwinds are particularly problematic for companies like CZR that rely heavily on discretionary leisure spending and sustained consumer confidence. Against this backdrop, the stock’s elevated valuation relative to peers leaves it vulnerable to further downside repricing.

Technical Analysis
CZR was recently rejected at its $31 resistance level and has since slipped back below both its 20-day and 50-day moving averages, signaling renewed downside momentum. The 200-day moving average, currently near $29.60, continues to act as longer-term resistance and reinforces the bearish setup.  Momentum indicators remain weak, with RSI stalled near neutral, leaving room for further downside.  With near-term support around $24 and a downside target closer to $18, the overall chart structure favors bearish positioning.

Fundamental Analysis
CZR’s financial profile reinforces the technical weakness, as the company trades at a steep premium despite underwhelming growth and margin trends compared to the industry. Elevated valuation multiples paired with negative profitability raise concerns about downside risk if macro conditions worsen or market share pressures intensify.

• Forward PE Ratio: 32.56x vs. Industry Median 15.93x
• Expected EPS Growth: 0% vs. Industry Median 11.75%
• Expected Revenue Growth: 2.50% vs. Industry Median 5.47%
• Net Margins: -1.71% vs. Industry Median 9.73%

Options Trade
To capitalize on this bearish view, we recommend initiating a bear call spread by selling the CZR Oct 17, 2025, $26 call and buying the $29 call for a net credit of $0.89. This trade structure benefits from the stock remaining below the $26 strike, aligning. The maximum profit is $89 per spread, realized if CZR closes at or below $26 at expiration, while the maximum risk is $211, creating a reward-to-risk ratio of roughly 1:2.4. This setup offers defined risk and efficient capital usage, making it an attractive way to express bearish exposure while taking advantage of elevated option premiums.

CZR – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 9 CZR Oct 17 $26/$29 Call Vertical Spreads @ $0.89 Credit per Contract.

Total Risk: This trade has a max risk of $1,899 (9 Contracts x $211) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $211 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: 94

Stop Loss: @ $1.78 (100% loss to value of premium)

View CZR 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 CZR Trade

DailyPlay Portfolio Review

Our Trades

C – 39 DTE

Bullish Credit Spread – Citigroup Inc (C) – We recently established this position, it is currently profitable, and we plan to stay the course for now.

GLD – 11 DTE

Bearish Butterfly – SPDR Gold Shares (GLD) – We have a neutral to bearish strategy on GLD. With expiration approaching and the position showing a small gain currently, it is okay to exit at any point. We will hold the position and will also be prepared to close at the beginning of the week. The strategy benefits if GLD drops to 337, the middle strike of the butterfly, or below. Keep a close eye on the position and close during the day if the opportunity presents itself to take a gain or if the stop loss point is hit. The position’s profit and loss will be volatile with expiration so close.

GS – 11 DTE & 116 DTE

Bullish Diagonal Debit Spread – Goldman Sachs Group, Inc. (GS) – We maintain a bullish outlook over the longer term and plan to hold this position. To lower the cost basis, we sold a short-term OTM call against the long position.

PM – 39 DTE

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

SCHW – 116 DTE

Bullish Long Call – Charles Schwab Corp. (SCHW) – We maintain our bullish outlook 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 the timing is appropriate.

SPOT – 32 DTE

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

TFC – 25 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.

Closing Trade

• MA – 39% loss: Sell to Close 1 Contract (or 100% of your Contracts) Oct 03 $585/$615 Call Vertical Spreads @ $9.71 Credit. DailyPlay Portfolio:  By Closing 1 Contract, we will be collecting $971. We adjusted this position and added a short call on September 05 reducing our cost basis to $1,585 Debit. Our loss, therefore, is $614 per contract.

GLD Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
The SPDR Gold Shares ETF (GLD) has delivered an exceptional rally in 2025, advancing more than 50% year-to-date as investors sought safety amid geopolitical risks, central bank accumulation, and shifting policy expectations. However, the rally appears stretched, with gold prices trading at extreme levels relative to both technical conditions and historical benchmarks. As the Federal Reserve signals resilience in the U.S. economy while moderating its rate policy, the risk/reward dynamic for gold shifts toward a potential downside correction. This setup makes GLD a compelling candidate for a tactical bearish trade.

Technical Analysis
GLD is trading near all-time highs just below $341 after a parabolic upside move, suggesting exhaustion risk. The ETF’s RSI stands at 72.85, firmly in overbought territory. Notably, within the options play platform yesterday, a “Bearish Counter Trend” alert was generated, highlighting that GLD has been extremely bullish but is now exhibiting signs of a potential reversal into a bearish trend. Key downside levels include the 20-day moving average near $325 as an initial trigger, followed by the 50-day moving average around $315 and the 200-day at $287. A sustained break below $325 would confirm downside momentum, with an upside resistance existing near the recent all-time high around $341.

Fundamental Analysis
From a fundamental perspective, gold is trading well above its long-term, inflation-adjusted average, raising questions about the sustainability of its current premium. While demand drivers like persistent inflation and central bank buying have supported prices, the potential for shifts in global risk appetite or reduced safe-haven demand present downside risks. With U.S. yields stabilizing but the dollar remaining weak, gold’s safe-haven premium could begin to compress if dollar sentiment reverses or if other asset classes regain investor favor. Current macro conditions may therefore limit further upside for gold in the near term, putting its elevated premium at risk of correction.

Options Trade
A tactical bearish expression can be structured with a GLD Oct 3, 2025, 334/337/345 Put Butterfly entered at a $356 debit. This is a non-standard butterfly, often referred to as an Open-Wing Butterfly, where the long spread is 8 points wide and the short spread is 3 points wide, which creates profitability not only near the $337 strike but also anywhere below the $334 put strike at expiration. The maximum potential reward is $444, with risk capped at the $356 cost. This structure aligns with the view that GLD may retrace sharply from overbought levels, offering attractive asymmetric exposure to downside while containing risk through defined premium outlay.

GLD – Daily

Trade Details

Strategy Details

Strategy: Long Put Butterfly Spread

Direction: Bearish Butterfly Spread

Details: Buy to Open 5 GLD Oct 03 $334/$337/$345 Put Butterfly Spreads @ $3.56 Debit per Contract.

Total Risk: This trade has a max risk of $1,780 (5 Contracts x $356) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $356 to select the # contracts for your portfolio.

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

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 146

Stop Loss: @ $1.78 (50% loss of premium)

View GLD 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 GLD Trade

PM Bearish Opening Trade Signal

Investment Rationale

Investment Thesis
Philip Morris International (PM) is showing signs of weakness as both technical and fundamental dynamics point to a more challenging backdrop. While the company remains a global leader in reduced-risk products and traditional tobacco, its elevated valuation and margin pressures leave little room for error. With price action stalling and momentum indicators rolling over, downside risks appear to be gaining traction. Against this backdrop, a defined-risk options strategy provides an efficient way to express a bearish view while limiting capital at risk.

Technical Analysis
On the daily chart, PM is consolidating, suggesting a potential reversal from its prior uptrend. The $161 area has been repeatedly tested and shows early signs of weakness on declining volume, indicating rising selling pressure. Technical indicators point to a bearish bias: the RSI sits at 43.2, below the neutral 50 level, while both the 20-day and 50-day moving averages are turning downward, with the 50-day acting as resistance recently. A decisive break below $161 would confirm a downward move. Until then, the setup favors cautious or bearish positioning, particularly as fundamentals continue to soften.

Fundamental Analysis
Philip Morris trades at a premium relative to its industry peers while delivering weaker margins, raising questions about sustainability if growth expectations falter. Revenue and EPS growth projections remain stronger than the industry median, but valuation and profitability leave the stock exposed should sentiment deteriorate further.

• Forward PE Ratio: 19.83x vs. Industry Median 15.57x
• Expected EPS Growth: 11.74% vs. Industry Median 7.99%
• Expected Revenue Growth: 7.84% vs. Industry Median 3.79%
• Net Margins: 21.08% vs. Industry Median 32.23%

Options Trade
A put vertical spread offers defined risk and favorable leverage to the downside. The suggested trade is to buy the Oct 31, 2025 $165 put and sell the $145 put for a net debit of $6.47 ($647 per spread). This structure risks $647 while offering a maximum reward of $1,353 if PM closes at or below $145 at expiration. The reward-to-risk ratio of roughly 2.1:1 makes the setup attractive. This approach provides efficient bearish exposure without the unlimited risk of outright shorting.

PM – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 3 PM Oct 31 $165/$145 Put Vertical Spreads @ $6.47 Debit per Contract.

Total Risk: This trade has a max risk of $1,941 (3 Contracts x $647) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $647 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: 118

Stop Loss: @ $3.24 (50% loss of premium)

View PM 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 PM Trade

C Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
Citigroup (C) offers an attractive bullish setup as it continues to improve its profitability and strengthen its balance sheet. The stock remains modestly undervalued compared to peers, yet it is demonstrating relative strength against the broader financial sector and the S&P 500. With management focused on efficiency gains and earnings growth, the current momentum in both the share price and fundamentals positions the stock for a sustained move higher. We see upside potential toward $135 as C closes its valuation gap while capitalizing on favorable macro tailwinds in the banking sector.

Technical Analysis
The stock has decisively cleared the $97 resistance level, which is now acting as firm support, while maintaining strength above the 20-day, 50-day, and 200-day moving averages, an alignment that confirms the prevailing uptrend. Momentum indicators are also supportive, with the RSI holding in the mid-60s, signaling steady buying interest without reaching overbought territory. This combination of technical strength and healthy momentum reinforces the bullish setup and points to further upside potential.

Fundamental Analysis
Citigroup continues to trade at a discount to peers, offering investors a value-driven growth story. While revenue growth lags the industry, its superior earnings trajectory reflects the company’s focus on restructuring, operational efficiency, and improved capital returns. Net margins remain below the sector median, but improving profitability should support multiple expansion.

• Price to Book Ratio: 0.93x vs. Industry Median 1.36x
  
• Expected EPS Growth: 23.21% vs. Industry Median 11.45%
  
• Expected Revenue Growth: 3.39% vs. Industry Median 5.73%
  
• Net Margins: 17.06% vs. Industry Median 26.86%

Options Trade
To express a bullish view on Citigroup (C), we recommend selling the Oct 31, 2025 $99/$93 put vertical spread for a net credit of $2.34. This involves selling the $99 put and buying the $93 put, resulting in a maximum potential profit of $234 per spread if C remains above $99 at expiration. The maximum risk is capped at $366 per spread, creating a favorable risk/reward setup where the trade yields a return of roughly 64% on risk if C holds above the short strike.

C – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 5 C Oct 31 $99/$93 Put Vertical Spreads @ $2.34 Credit per Contract.

Total Risk: This trade has a max risk of $1,830 (5 Contracts x $366) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $366 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: 98

Stop Loss: @ $4.68 (100% loss to value 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 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 C Trade