DailyPlay Portfolio Review

Our Trades

AMZN – 39 DTE

Bearish Debit Spread – Amazon.com Inc. – We recently initiated this position and, considering the ongoing bearish market conditions, will maintain our current approach. We expect the bearish trend to continue in the short term, but time decay, along with a possible decrease in implied volatility if conditions settle, should help this already profitable position.

NEE – 25 DTE

Bullish Long Call – NextEra Energy, Inc. – With the current market environment, all bullish positions are highly unstable. We’re holding for the moment, but a prompt exit may become necessary.. The company is set to report earnings on Tuesday, April 22, ahead of our call options’ expiration.

NEM – 9 DTE

Bullish Long Call – Newmont Corporation (NEM) – The position is underperforming, despite Newmont being a mining company focused on gold, silver, and other metals that are near record-high prices. In this market environment, bullish positions are especially vulnerable. We’re maintaining the trade for now, but could close it in the near future.

Closing Trades

• BABA – 65% loss: Sell to Close 3 Contracts (or 100% of your Contracts) May 16 $130/$155 Call Vertical Spreads @ $3.37 Credit. DailyPlay Portfolio:  By Closing all 3 Contracts, we will be receive $1,011. We initially opened these 3 Contracts on March 11 @ $9.67 Credit. Our loss, therefore, is $630 per contract.
• F – 38% loss: Sell to Close 20 Contracts (or 100% of your Contracts) May 2 $9.50 Calls @ $0.64 Credit. DailyPlay Portfolio:  By Closing all 20 Contracts, we will be receive $1,280. We initially opened these 20 Contracts on March 25 @ $1.04 Credit. Our loss, therefore, is $40 per contract.
• BSX – 63% gain: Buy to Close 3 Contracts (or 100% of your Contracts) May 2 $100/$110 Call Vertical Spreads @ $1.18 Debit. 
  DailyPlay Portfolio:  By Closing all 3 Contracts, we will be paying $354. We initially opened these 3 Contracts on March 28 @ $3.12 Credit. Our gain, therefore, is $582.

How to Trade “Liberation Day”

President Donald Trump unveiled significant tariffs, marking a pivotal shift in U.S. trade policy. Dubbed “Liberation Day,” these measures impose a 10% baseline tariff on all imports, effective April 5, with higher reciprocal tariffs for countries with large trade deficits, effective April 9, targeting over 100 trading partners. And this mornings news of China retaliating with 34% tariffs next week, sends risk assets lower and we are at risk of heading down to our $5100 downside target.

Market Reaction

Equities sold off heavily overnight and extended into the cash session on Thursday with the S&P down 4.84%, the Nasdaq-100 down 5.41% and the Russell 2000 Small Cap Index down 6.59%. Additionally, the selloff was broad based with only Consumer Staples ending in the green up 0.58% on the day. The equal weight S&P 500 index was down 4.76%, suggesting that stocks were hit across the board. VIX closed at an 8 month high above 30%, suggesting that traders fear potentially more downside in the coming weeks. 

Potential Positives

The announcement reduces uncertainty by clarifying policy, potentially stabilizing market expectations. Some countries, like Australia, have ruled out retaliatory tariffs and expressed willingness to negotiate, suggesting room for dialogue. Early responses indicate limited immediate retaliation, with South Korea’s acting president urging negotiations to minimize impact, which could mitigate short-term trade war risks, though this remains uncertain.

Potential Negatives

Inflation is likely to rise, with estimates suggesting a 1.4-2.2% increase in core inflation due to higher import costs, as per a CNBC analysis (Trump’s tariffs are expected to raise consumer prices, but a key question remains: By how much?). Consumer confidence has plunged to a four-year low, driven by fears of recession and price hikes, with the Conference Board survey showing worries about trade policies. Businesses may face shrinking margins as they balance declining sales with maintaining market share, risking stagflation as growth slows and inflation persists, with economic forecasts warning of these pressures.

Stay Updated – Join us every Monday Morning for our Macro Research & Trade Ideas webinar at 8:45AM EST. Register for free at: https://optionsplay.zoom.us/webinar/register/6917437339013/WN_0xqvl8yJQ8y8j_nYiroOkQ

Trade Ideas 

In this market environment, there are a few ways to think about how to invest going forward:

1. Safe haven assets (Treasuries & Gold) – As recession risks rise with the implementation of tariffs and the US economy slows, safe haven assets will likely continue to see outsized demand. 
2. Hedging downside – If the S&P 500 closes below $5500 this week, further downside is likely and hedging using a 2-3 week put spread could be useful to offset downside risks. 
3. Bearish on Consumer Discretionary & Durables – Companies that have high exposure to imported consumer goods have the largest risk of further downside as consumer spending slows and margin compression. Consumer durable purchases most likely to suffer larger drawdowns as uncertainty erodes further. 
4. Bullish on Domestic Manufacturing – Companies that benefit from the protections that tariffs provide and a shift to onshoring production such as NUE, INTC, LMT, TSN, ADM, CAT, DE, TXN, BA, etc. 

Closing Trades

• AAPL – 74% gain: Buy to Close 2 Contracts (or 100% of your Contracts) May 2 $225/$240 Call Vertical Spreads @ $1.51 Debit. DailyPlay Portfolio: By Closing both Contracts, we will be paying $302. We initially opened these 2 Contracts on March 26 @ $5.73 Credit. Our gain, therefore, is $844.

• PDD – 26% loss: Buy to Close 3 Contracts (or 100% of your Contracts) May 2 $120/$110 Put Vertical Spreads @ $4.99 Debit. DailyPlay Portfolio: By Closing all 3 Contracts, we will be paying $1,497. We initially opened these 3 Contracts on March 27 @ $3.18 Credit. Our loss, therefore, is $181 per contract. The margin requirement per contract is $1,000 and we received a Credit of $318 per contract giving us a net margin requirement of $682. Our loss is $181 per contract which gives us a net loss of 26%.

• COP – 46% loss: Buy to Close 4 Contracts (or 100% of your Contracts) May 2 $102/$95 Put Vertical Spreads @ $3.88 Debit. DailyPlay Portfolio: By Closing all 4 Contracts, we will be paying $1,552. We initially opened these 4 Contracts on April 1 @ $1.25 Credit. Our loss, therefore, is $263 per contract. The margin requirement per contract is $700 and we received a Credit of $125 per contract giving us a net margin requirement of $575 Our loss is $263 per contract which gives us a net loss of 46%.

AMZN Bearish Opening Trade Signal

Investment Rationale

The recent announcement of sweeping tariffs, including a baseline 10% on all imports and higher rates for specific nations, poses significant challenges for Amazon.com Inc. (AMZN). The company’s extensive reliance on a global supply chain, particularly imports from countries facing steep tariff increases, is likely to drive up operational costs and pressure profit margins. Additionally, potential consumer demand shifts due to rising prices may weigh on AMZN’s top-line growth.

Following the tariff announcement, AMZN’s stock experienced heightened volatility, reflecting investor concerns over potential cost increases and supply chain disruptions. The stock has been on an extended losing streak, declining approximately 22% from its February 4 high of $242.52. This sustained downtrend suggests bearish sentiment, with AMZN trading below key moving averages and approaching critical support levels. A break below $190 could accelerate further downside toward the $165 target.
The impending tariffs are expected to negatively impact Amazon’s financial performance by increasing the cost of goods sold and potentially reducing consumer demand due to higher prices. Key financial metrics include:

• Forward P/E Ratio: 31.75x vs. Industry Median 20.92x
• Expected EPS Growth: 18.32% vs. Industry Median 8.74%
• Expected Revenue Growth: 9.98% vs. Industry Median 4.82%
• Net Margins: 9.29% vs. Industry Median 11.18%

Amazon’s valuation remains elevated, with a forward P/E ratio of 31.75x, significantly higher than the industry median of 20.92x. While the company boasts strong growth prospects, with expected EPS growth of 18.32% and revenue growth of 9.98%, both exceeding industry averages, its profitability lags behind peers. Amazon’s net margins stand at 9.29%, lower than the industry median of 11.18%, highlighting 

To capitalize on the bearish outlook, consider a bear put vertical spread: Buy AMZN May 16, 2025, 200/175 Put Vertical. The setup benefits from a continued decline in AMZN’s stock price while limiting downside risk in case of a reversal.

AMZN – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 2 Contracts AMZN May 16 $200/$175 Put Vertical Spreads @ $8.55 Debit per Contract.

Total Risk: This trade has a max risk of $1,710 (2 Contracts x $855) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $855 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: 7/10

OptionsPlay Score: 132

Stop Loss: @ $4.28 (50% loss of premium)

View AMZN 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 AMZN Trade

Closing Trade

BIDU – 32% loss: Buy to Close 5 Contracts (or 100% of your Contracts) May 2 $94/$87 Put Vertical Spreads @ $3.32 Debit. DailyPlay Portfolio: By Closing all 5 Contracts, we will be paying $1,660. We initially opened these 5 Contracts on March 17 @ $2.13 Credit. Our loss, therefore, is $119 per contract. The margin requirement per contract is $700 and we received a Credit of $507 per contract giving us a net margin requirement of $368. Our loss is $119 per contract which gives us a net loss of 32%.

COP Bullish Opening Trade Signal

Investment Rationale

ConocoPhillips (COP) appears well-positioned for stability and potential upside. COP has recently broken out of its trading range as oil prices climb, driving upside momentum. This aligns with broader market trends, where rising crude prices are boosting energy stocks. The surge in oil prices is likely fueled by geopolitical tensions, including threats of secondary tariffs on Russian oil buyers if peace efforts stall, potentially tightening global supply. The stock is forming higher lows and holding above key moving averages, signaling sustained support. A confirmed breakout above a key resistance level around the 200-day SMA could pave the way for further gains.

The company has a strong asset base and a disciplined approach to capital spending, which should help sustain solid cash flows. Additionally, COP’s shareholder-friendly policies, including dividends and buybacks, add to its appeal in a market that values capital returns.

• Forward P/E Ratio: 11.2 (vs. Industry Median: 13.5)
• Expected EPS Growth: 14.8% (vs. Industry Median: 10.2%)
• Expected Revenue Growth: 9.5% (vs. Industry Median: 6.7%)
• Net Margins: 17.4% (vs. Industry Median: 12.8%)

COP offers a strong combination of value, growth, and profitability. The stock trades at a discount relative to its industry peers and is well-positioned for solid earnings and revenue growth, outpacing the broader sector. Additionally, the company demonstrates strong profitability with healthy margins, reflecting its operational efficiency and ability to generate consistent returns. These factors make COP an attractive opportunity for traders targeting upside potential in the energy sector.

Options Trade Idea:
A bullish put credit spread offers a strategic way to capitalize on COP’s support levels. Selling the May 2, 2025, 102/95 put vertical spread provides a defined risk-reward structure. This trade profits if COP remains above $102 at expiration, aligning with both its strong technical support and solid fundamentals.

COP – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 4 Contracts COP May 2 $102/$95 Put Vertical Spreads @ $1.40 Credit per Contract.

Total Risk: This trade has a max risk of $2,240 (4 Contracts x $560) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $560 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: 97

Stop Loss: @ $2.80 (100% loss to value of premium)

View COP 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 COP Trade

DailyPlay Portfolio Review

Our Trades

AAPL – 32 DTE

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

BABA – 46 DTE

Bullish Debit Spread – Alibaba Group Holding Ltd. – Still have a positive outlook on BABA, with the Chinese government loosening its reins on the economy recently. However, it appears to be a battle between persistent concerns over U.S. tariffs and China trying/wanting to grow the economy. The position is currently at a loss, but we plan to hold steady for now.

BIDU – 32 DTE

Bullish Credit Spread – Baidu, Inc. – The story for BIDU is similar to BABA, but we are down a bit more on this position and nearing a stop-loss point. We have it on a leash to keep a close watch on it, but it will be a short one.

BSX – 32 DTE

Bearish Credit Spread – Boston Scientific – This position was established recently and is showing a small gain. We’re holding firm for now.

F – 32 DTE

Bullish Long Call – Ford Motor Company – Recent headlines from Washington have driven significant volatility in the stock’s price, a trend we anticipate will persist. Our strong fundamental view of Ford remains intact, yet we may need some news that is perceived as favorable to ignite some upward momentum in the stock’s price.

NEE – 25 DTE

Bullish Long Call – NextEra Energy, Inc. – We established this position recently, and it is currently at a loss. For now, we’ll hold steady. The company is set to report earnings on Tuesday, April 22, ahead of our call options’ expiration.

NEM – 17 DTE

Bullish Long Call – Newmont Corporation (NEM) – This position is at a loss, but we still have a bullish outlook for the mining company, which mines gold, silver, and other metals. These commodities have recently been trading near their highs. We’re holding firm for now.

PDD – 32 DTE

Bullish Credit Spread – PDD Holdings Inc. – We opened this position recently, and little has occurred since then. For now, we intend to hold steady.

Closing Trade

• AMGN – 23% loss: Buy to Close 2 Contracts (or 100% of your Contracts) April 11 $315/$300 Put Vertical Spreads @ $7.35 Debit. DailyPlay Portfolio: By Closing both Contracts, we will be paying $1,470. We initially opened these 2 Contracts on March 21 @ $5.07 Credit. Our loss, therefore, is $228 per contract. The margin requirement per contract is $1,500 and we received a Credit of $507 per contract giving us a net margin requirement of $993. Our loss is $228 per contract which gives us a net loss of 23%.

BSX Bearish Opening Trade Signal

Investment Rationale

Boston Scientific (BSX) appears overextended both technically and fundamentally, making it a compelling candidate for bearish exposure. The stock has broken below key technical levels and is now retesting resistance, presenting a high-probability downside setup. Additionally, its valuation is significantly stretched relative to industry peers, despite only marginally superior growth metrics. This combination of technical weakness and fundamental overvaluation suggests downside risk toward $90.  

BSX recently broke down below a key trading range and has since rallied back to retest prior support, which is now acting as resistance. This price action presents an optimal risk/reward opportunity for bearish positioning, as failed retests of support-turned-resistance often lead to continued downside. Momentum indicators also confirm weakening price strength, reinforcing the potential for further declines. A downside target of $90 aligns with prior support levels.  

BSX is trading at a premium valuation despite subpar net margins and only slightly above-average growth rates compared to its industry peers. The elevated multiple suggests significant downside risk if growth expectations falter.  

• Forward PE Ratio: 35.19x vs. Industry Median 21.70x  
• Expected EPS Growth: 13.65% vs. Industry Median 11.25%  
• Expected Revenue Growth: 11.37% vs. Industry Median 7.73%  
• Net Margins: 11.05% vs. Industry Median 17.34%  

Our preference is to take a neutral to bearish outlook by harnessing options premiums through a bearish call spread – Selling to Open, BSX May 2, 2025 100/110 Call Verticall. This trade benefits from time decay and provides a favorable risk/reward profile for bearish exposure on BSX.

BSX – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 3 Contracts BSX May 2 $100/$110 Call Vertical Spreads @ $3.87 Credit per Contract.

Total Risk: This trade has a max risk of $1,839 (3 Contracts x $613) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $613 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue pull back from recent resistance.

1M/6M Trends: Neutral/Neutral

Relative Strength: 9/10

OptionsPlay Score: 105

Stop Loss: @ $7.74 (100% loss to value of premium)

View BSX 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 BSX Trade

PDD Bullish Opening Trade Signal

Investment Rationale

PDD Holdings Inc. (PDD) showcases strong technical momentum, robust fundamental growth, and exceptional performance relative to its peers, solidifying our bullish perspective on the stock. Despite persistent concerns over U.S. tariffs, China has begun easing its economic approach, shifting to a “moderately loose” monetary policy and implementing measures to stimulate growth. With PDD trading at a substantial discount compared to similar companies, it remains primed for significant upside potential.

According to PDD’s chart, the stock recently broke out above its key trading range with impressive momentum, though it has since experienced a slight pullback. It continues to outperform the broader S&P 500, suggesting sustained institutional support and relative strength. Provided PDD holds above its prior breakout level, our upside target of $145 remains intact, backed by compelling price action and fundamental resilience. Despite its superior growth metrics, PDD trades at a notable discount to its industry:  

• Forward P/E Ratio: 10.02x vs. Industry Median 22.47x  
• Expected EPS Growth: 30.21% vs. Industry Median 9.59%  
• Expected Revenue Growth: 31.26% vs. Industry Median 4.92%  
• Net Margins: 29.06% vs. Industry Median 9.95%  

These figures underscore PDD’s remarkable profitability and growth trajectory, reinforcing our conviction that the stock is undervalued.

To harness our bullish outlook while mitigating risk, we recommend selling the May 2, 2025, 120/110 put vertical spread for a $3.31 credit. This trade profits as long as PDD stays above $120 at expiration, offering a maximum reward of $331 per contract against a defined risk of $669. Despite the recent pullback, PDD’s breakout and strong fundamentals make this strategy an effective way to capitalize on its upward momentum while maintaining an attractive risk-reward balance.

PDD – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 Contracts PDD May 2 $120/$110 Put Vertical Spreads @ $3.31 Credit per Contract.

Total Risk: This trade has a max risk of $2,007 (3 Contracts x $669) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $669 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: 93

Stop Loss: @ $13.38 (100% loss to value of premium)

View PDD 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 PDD Trade

Closing Trades

• SHOP – 79% gain: Buy to Close 3 Contracts (or 100% of your Contracts) April 25 $92/$80 Put Vertical Spreads @ $0.63 Debit. 
  DailyPlay Portfolio:  By Closing all 3 Contracts, we will be paying $189. We initially opened these 3 Contracts on March 12 @ $2.95 Credit. Our gain, therefore, is $696.
• AMGN – 48% loss: Buy to Close 3 Contracts (or 100% of your Contracts) April 25 $310/$300 Put Vertical Spreads @ $4.74 Debit. 
  DailyPlay Portfolio: By Closing all 3 Contracts, we will be paying $1,422. We initially opened these 3 Contracts on March 14 @ $3.20 Credit. Our loss, therefore, is $154 per contract.

AAPL Bearish Opening Trade Signal

Investment Rationale

As Apple Inc. (AAPL) approaches its $225 resistance level, a series of mounting challenges remains. A more selective consumer has led to disappointing iPhone 16 sales, a major component of revenue. 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 gone from bad to worse, pushing its core features that were marketed with the iPhone 16 into next year. Compounding these issues, the economic slowdown in China, a critical market for Apple, is dampening sales further. And with AAPL’s valuation trading at a 50% premium over its peers, it’s increasingly untenable given an outlook that lacks much optimism. This puts AAPL in a spot of vulnerability, suggesting that a breakout back towards recent highs 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 as it approaches a major resistance level, the timing is optimal to add some bearish exposure where the risk/reward is attractive. Our downside target on AAPL is $200. 

And if we look at the business,AAPL’s valuation is hard to justify, trading at an 50% 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: 30x 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 May 2, $225/240 Call Vertical @ $5.58 Credit.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 2 Contracts AAPL May 2 $225/$240 Call Vertical Spread @ $5.58 Credit per Contract.

Total Risk: This trade has a max risk of $1,884 (2 Contracts x $942) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $942 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 over the duration of this trade.

1M/6M Trends: Bearish/Bearish

Relative Strength: 4/10

OptionsPlay Score: 103

Stop Loss: @ $11.16 (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 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 AAPL Trade

F Bullish Opening Trade Signal

Investment Rationale

Ford Motor Co. (F) is positioned for a rally as it breaks out above resistance, fueled by the recent exclusion of autos from tariffs announced on April 2, which is expected to drive a broader rally in auto stocks. This tariff relief removes a significant overhang for the sector, allowing Ford to benefit from improved cost structures and enhanced competitiveness in key markets. Ford’s focus on electric vehicles (EVs) and its strong lineup of traditional vehicles continue to resonate with consumers, while its undervalued fundamentals provide a margin of safety for investors. With the stock outperforming the S&P 500 and showing strong momentum, F is an attractive opportunity in the auto sector amidst this favorable policy shift.

The chart confirms F’s bullish setup, as the stock has broken through a key resistance level at $10 with strong momentum, outpacing the S&P 500. The breakout supported by positive volume trends indicates potential for a rally towards our $12.50 target.

Ford trades at a substantial discount to its peers despite exhibiting growth metrics that outperform its industry, suggesting there is significant upside potential.

• Forward PE Ratio: 7.62x vs. Industry Average 10.18x
• Expected EPS Growth: 11.38% vs. Industry Average 6.40%
• Expected Revenue Growth: -2.79% vs. Industry Average 2.70%
• Net Margins: 3.18% vs. Industry Average 3.53%

Bullish Thesis:

• Tariff Relief: The exclusion of autos from tariffs announced on April 2, 2025, removes a major cost burden, boosting Ford’s profitability and competitiveness, and driving a potential rally in auto stocks.
• EV and Traditional Vehicle Strength: Ford’s strategic focus on electric vehicles, alongside its strong traditional vehicle lineup, positions it to capture market share in a recovering auto sector.

Undervalued Opportunity: Trading at a significant discount to its peers with solid EPS growth, Ford offers an attractive risk-to-reward profile for investors.

F – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 20 Contracts Ford May 2 $9.50 Call @ $1.00 Debit per Contract.

Total Risk: This trade has a max risk of $2,000 (20 Contracts x $100) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $100 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/Mildly Bullish

Relative Strength: 7/10

OptionsPlay Score: 80

Stop Loss: @ $0.50 (50% loss of premium)

View F 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 F Trade