Closing Trade

• AAPL – 53% gain: Buy to Close 2 Contracts (or 100% of your Contracts) April 4 $245/$260 Call Vertical Spreads @ $2.89 Debit. 
  DailyPlay Portfolio:  By Closing both Contracts, we will be paying $578. We initially opened these 2 Contracts on Feb 24 @ $6.21 Credit. Our gain, therefore, is $664.

GLD Bullish Opening Trade Signal

Investment Rationale

Gold prices have recently reached new highs, driven by macroeconomic, geopolitical, and market-specific factors, reinforcing their role as a safe-haven asset. After nearing the 3000 level, gold futures pulled back to key support at the mid-October high before rebounding with strong momentum. SPDR Gold Shares ETF (GLD) followed suit, bouncing near 261, with upside momentum suggesting a potential retest of the most recent high in GLD of 272.32. Meanwhile, the CBOE Volatility Index (VIX) has remained elevated near the upper end of its range, holding around 20 for an extended period, implying that market concerns are unlikely to fade in the near term.

GLD – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 Contracts GLD April 4 $269/$260 Put Vertical Spreads @ $3.00 Credit per Contract.

Total Risk: This trade has a max risk of $1,800 (3 Contracts x $600) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $600 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on an ETF that is expected to continue its bullish trajectory.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 91

Stop Loss: @ $6.00 (100% loss to value 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 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 GLD Trade

Closing Trade

• LRCX – 55% loss: Sell to Close 2 Contracts (or 100% of your Contracts) March 21 $74 Calls @ $4.43 Credit. 
  DailyPlay Portfolio: By Closing both Contracts, we will receive $886. We initially opened these 2 Contracts on Jan 31 @ $10.03. Our loss on this trade is therefore $560 per Contract.

DailyPlay Portfolio Review

Our Trades

AAPL – 32 DTE

Bearish Credit Spread – Apple Inc. (AAPL) –  This position was established recently and is profitable. We plan to hold steady for now.

BIDU – 32 DTE

Bullish Credit Spread – Baidu, Inc. (BIDU) – Since opening this position, there have been no significant changes, so we plan to hold for now.

DAL – 45 DTE

Bearish Debit Spread – Delta Air Lines, Inc. (DAL) – We recently established this position and plan to stay the course for now.

KMI – 32 DTE

Bearish Long Put – Kinder Morgan Inc. (KMI) – Since establishing this position, we are slightly down. We plan to hold steady for now.

LRCX – 18 DTE

Bullish Long Call – Lam Research Corporation (LRCX) – This position is at a loss, and with expiration only weeks away, it’s time to either sell a call to create a bull call spread or close it outright. We’ll closely monitor it early in the week.

NVDA – 4 DTE

NVDA delivered a strong earnings beat last week, but market headlines overshadowed the results. With expiration approaching, the position is still down, though Friday’s momentum was encouraging, and we hope it continues, offering an opportunity to recover some value.

V – 32 DTE

Visa’s strong upward momentum continues. We’re profitable and maintaining our position for now.

BAC Bullish Opening Trade Signal

Investment Rationale

The financial sector is experiencing favorable tailwinds, with interest rates enhancing net interest margins for major banks like BAC. Bank of America (BAC) is presenting a bullish opportunity as it bounces off support, setting the stage for potential breakout to all-time highs. Additionally, BAC’s balance sheet and diversified revenue streams position it to capitalize on improving regulatory environment and increased lending activity. Trading at an attractive valuation with solid growth metrics, BAC is poised to benefit from these macro trends, making it an appealing investment within the financial sector.

The chart confirms BAC’s bullish setup, as the stock recently bounced off its $43 support and is now approaching the $48 double top. A breakout above this level could propel BAC to our $55 upside target. 

Fundamentals: Attractively Valued

BAC trades at a slight discount to its industry, with growth and profitability metrics that highlight its potential for outperformance. The bank’s strong fundamentals and favorable macro environment bolster its investment case.

• PB Ratio: 1.29x vs. Industry Average 1.37x
• EPS Growth: 15.29% vs. Industry Average 13.83%
• Revenue Growth: 5.80% vs. Industry Average 5.28%
• Net Margins: 26.63% vs. Industry Average 24.02%

Bullish Thesis:

• Favorable Interest Rate Environment: Interest rates are boosting BAC’s net interest margins, a key driver of profitability for the bank.
• Strong Balance Sheet: BAC’s diversified revenue streams and solid capital position provide resilience and growth potential in a recovering economy.
• Increased Lending Activity: Improving domestic regulatory conditions are driving higher loan demand, benefiting BAC’s core banking operations.

BAC – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 10 Contracts BAC May 16 $45/$50 Call Vertical Spreads @ $2.01 Debit per Contract.

Total Risk: This trade has a max risk of $2,010 (10 Contracts x $201) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $201 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 106

Stop Loss: @ $1.01 (50% loss of premium)

View BAC 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 BAC Trade

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).