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☆ Market Navigator: The best trades in housing
▼ + stars: | 2024-11-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMarket Navigator: The best trades in housingTony Zhang, OptionsPlay chief strategist, joins 'Power Lunch' to discuss the best trades in housing.

Persons: Tony Zhang

☆ A bearish options trade on Apple as stock struggles to keep up with broader market
▼ + stars: | 2024-11-20 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

Back in late September, I laid out a bearish thesis on Apple and the trade expired last Friday and resulted in a 100% gain. Apple (AAPL) continues to face significant headwinds, with disappointing iPhone 16 sales, growing competition in augmented reality, and underwhelming progress in artificial intelligence (AI). China's slowing economy has weighed heavily on Apple, exacerbating challenges in one of its largest markets. While Apple boasts industry-leading net margins of 24%, its expected EPS growth of 11.6% and revenue growth of 6.9% provide limited justification for this valuation premium. With iPhone sales growth faltering and the lack of a clear catalyst from AI or AR/VR initiatives, AAPL's premium valuation remains increasingly difficult to sustain.

Persons: AAPL Organizations: Apple, Apple Intelligence, Meta, Microsoft, CNBC, NBC UNIVERSAL Locations: OptionsPlay

☆ The bullish Meta trade is paying off. How to keep exposure while limiting risk with options
▼ + stars: | 2024-11-12 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

As we approach the expiration of our Meta Platforms (META) trade from early October we have successfully captured 78% of the total maximum gain. On the fundamentals, META stands out as a leader in profitability and growth compared to its industry peers. And with analysts expecting EPS growth of 23% and revenue growth at 16%, META outpaces the industry averages by a significant margin. Additionally, META trades at 23x forward earnings, which is a 15% discount relative to its peers, presenting a substantial upside potential. The breakeven point is $571.77, meaning the trade remains profitable as long as Meta stays above this level.

Persons: AAPL Organizations: Apple, CNBC, NBC UNIVERSAL Locations: OptionsPlay

☆ This software stock is well-positioned to benefit from Trump's agenda, trader says
▼ + stars: | 2024-11-08 | by ( Tony Zhang | ) www.cnbc.com time to read: +4 min

A pro-business agenda, regulatory flexibility, and potential tax incentives under his administration could once again set the stage for technology stocks to outperform. Adobe (ADBE) , a leader in AI-enhanced creative solutions, is particularly well-positioned to capitalize on this environment. With its superior growth rates and operational margins that set it apart from peers, Adobe's valuation presents a compelling entry point amid strong fundamentals and a supportive administration. This signals that sellers are starting to get exhausted and presents an opportunity for buyers to start stepping in for a strong counter-trend rally. To capitalize on a potential rally in Adobe, consider buying the December 20, 2024, $500/550 Call Vertical @ $18.05 Debit.

Persons: Donald Trump's, ADBE Organizations: Adobe, Digital Media, CNBC, NBC UNIVERSAL

☆ How to bet on a comeback in this cheap apparel stock using options
▼ + stars: | 2024-10-30 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

LULU has demonstrated resilience, driven by strong financial controls, international expansion, and continued product innovation. With strong growth, LULU has positioned itself as a market leader, capturing increasing market share in North America while expanding into high-growth areas like APAC and EMEA. LULU has shed over 50% of its value earlier this year and just recently completed a bottoming formation below $270. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Lululemon Athletica, LULU Organizations: CNBC, NBC UNIVERSAL Locations: North America, OptionsPlay

☆ This AI play has bottomed and is breaking out, according to options trader Zhang. How to play it
▼ + stars: | 2024-10-23 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

As industries increasingly rely on real-time AI models, Akamai's infrastructure offers both speed and enhanced security by processing data closer to users. This technological edge, combined with the company's attractive valuation, offers substantial upside potential, with recent market activity reflecting growing investor interest in its AI-driven growth opportunities. AKAM has formed a classic bottoming pattern over the past few months and is now breaking above a major resistance level at $102.50. AI models distributed on Akamai's extensive edge computing network provide significant upside potential, especially as demand for low-latency AI solutions increases across various industries. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: AKAM, Zhang Organizations: Akamai Technologies, CNBC, NBC UNIVERSAL Locations: AKAM

☆ A lower-risk trade using options on an AI-derivative play that's breaking out
▼ + stars: | 2024-10-16 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

As industries increasingly rely on real-time AI models, AKAM's infrastructure offers both speed and security by processing data closer to users. Combined with the company's attractive valuation, it offers substantial upside potential, with the chart showing growing investor interest in its AI-driven opportunities. Trading at only 15 times forward earnings, it's a significant discount relative to its industry average of nearly 28. AI models distributed on AKAM's extensive edge computing network provide significant upside potential, especially as demand for low-latency AI solutions increases across various industries. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Organizations: CNBC, NBC UNIVERSAL Locations: OptionsPlay

☆ There may be a trade opportunity in this e-commerce stock. How to play it with options
▼ + stars: | 2024-10-09 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

With a surprisingly strong labor market, consumer spending has remained resilient and e-commerce stocks like Shopify (SHOP) present attractive opportunities. This price action indicates strength and suggests that the stock has found a strong base from which it can continue higher. With the stock now trading above its breakout level and positive momentum continuing to build, the chart supports further upside. The trade: To express a bullish outlook on Shopify, I'm suggesting selling the Nov 22, $82/74 Put Vertical @ $3.10 Credit. This structure entails: Selling the Nov 22 $82 Put @ $5.85 Buying the Nov 22 $74 Put @ $2.75 View this link in OptionsPlay with updated pricing.

Persons: Shopify, Shopify's Organizations: Forward, CNBC, NBC UNIVERSAL

☆ Market Navigator: Trading Ferrari to the downside
▼ + stars: | 2024-10-07 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMarket Navigator: Trading Ferrari to the downsideTony Zhang, Options Play chief strategist, joins 'Power Lunch' to discuss trading Ferrari to the downside.

Persons: Tony Zhang

☆ How to keep betting on a Meta breakout with protection in case of a pullback
▼ + stars: | 2024-10-02 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

The strategic focus Meta has placed on monetizing these AI tools across its platforms — including Facebook, Instagram, and WhatsApp — gives it a unique competitive advantage. This commitment to revenue generation from AI sets it apart from other firms still exploring AI potential without clear paths to monetization. If we review the chart for Meta, it has shown strong performance, recently breaking above a key resistance level at $545. Meanwhile, the company boasts robust growth projections with an expected future EPS growth of 22% (industry average of 16%) and a revenue growth rate of 15% (industry average of 11%). With these growth and profitability metrics, Meta appears undervalued, offering a compelling risk/reward profile for long-term investors looking to benefit from its AI-driven revenue potential.

Persons: WhatsApp, Meta Organizations: Facebook, Meta, CNBC, NBC UNIVERSAL

☆ An options trade that wins if Apple continues to trade sideways or down on iPhone, AI disappointment
▼ + stars: | 2024-09-25 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

Apple Inc. (AAPL) is facing headwinds despite the launch of the new iPhone 16, which offered only incremental improvements over the prior generation. Investors eagerly awaited the company's Apple Intelligence software update, but its absence as a significant growth driver is tempering investor enthusiasm. To capitalize on the potential downside, I suggest selling the Nov 15 $230/$245 Call Vertical. This entails: Sell the Nov 15, 2024 $230 Calls @ $7.73 Buy the Nov 15, 2024 $245 Calls @ $2.41 View this trade in OptionsPlay for updated pricing. This trade provides a high probability of profit trade for investors who believe AAPL will remain range-bound or face further downside, particularly given the slowing growth.

Persons: AAPL's, AAPL Organizations: Apple Inc, Apple Intelligence, Apple, CNBC, NBC UNIVERSAL Locations: OptionsPlay

☆ How to play the Fed decision using options on gold
▼ + stars: | 2024-09-18 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

Gold is trading at all-time highs due to a combination of inflation concerns, geopolitical risks, and expectations around monetary policy. Historically, gold tends to benefit from dovish monetary policies, especially when they signal prolonged low interest rates, which reduce the opportunity cost of holding non-yielding assets like gold. Gold has maintained its bullish momentum, trading near $2,600, and appears to be breaking into new all-time highs. Looking at the chart, gold has consistently made higher highs and higher lows, a sign of strong upward momentum. The trade To express a bullish to neutral view on gold going into the Fed announcement, consider selling a SPDR Gold Shares (GLD) Nov 1 $237.5/232.5 Put Vertical @ $2.02 Credit.

Persons: GLD Organizations: CNBC, NBC UNIVERSAL Locations: Central

☆ Market Navigator: Using hedging with options to play gold
▼ + stars: | 2024-09-17 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMarket Navigator: Using hedging with options to play goldTony Zhang, Options Play chief strategist, joins 'Power Lunch' to discuss hedging with options for gold.

Persons: Tony Zhang

☆ A 'butterfly' options spread trade that pays off if there's an earnings-driven rally in Adobe
▼ + stars: | 2024-09-11 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

The company's innovation pipeline provide long-term growth potential, with the earnings event likely serving as a catalyst for further upside. With expected EPS growth of 14% and revenue growth of 11%, Adobe maintain its leadership in the software industry. To capitalize on the potential for an earnings-driven rally, we suggest using a "broken wing butterfly," which offers a high reward-to-risk ratio. Specifically, I suggest the ADBE Sep 20, 2024 $585/630/650 Call butterfly at $10.96 Debit. This strategy entails: • Buying the Sep 20 $585 Calls @ $18.80 • Selling the Sep 20 $630 Calls (2 contracts) @ $5.53 • Buying the Sep 20 $650 Calls @ $3.22 This butterfly strategy offers a maximum reward of $3,404 per contract while limiting risk to only $1,096 per contract.

Organizations: Adobe, CNBC, NBC UNIVERSAL

☆ Market Navigator: Options for Google
▼ + stars: | 2024-08-12 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMarket Navigator: Options for GoogleTony Zhang, OptionsPlay chief strategist, joins 'Power Lunch' to discuss the re-rating of Google.

Persons: Tony Zhang Organizations: Google

☆ This energy stock is set for a breakout with oil on the rise again. How to play it with options
▼ + stars: | 2024-07-31 | by ( Tony Zhang | ) www.cnbc.com time to read: +2 min

As oil rebounds following oversold conditions, it provides an opportunity for buyers to step in, especially with the potential for geopolitical tensions to rise. And one energy stock that looks set up to potentially break out is Phillips 66 (PSX) after largely trading in a range since February. However, it is now just starting to break out from that trading range and starts to target the $170 highs as upside targets. With a higher debt to equity ratio, PSX has a higher implied leverage than its peers, which provides a higher upside potential if oil prices recover from its recent pullback. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Phillips, PSX Organizations: CNBC, NBC UNIVERSAL

☆ Using options to manage risk heading into Microsoft earnings next week
▼ + stars: | 2024-07-24 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

Heading into earnings next week, Microsoft is positioned to continue capitalizing on the growing demand for artificial intelligence and cloud computing services, underscored by the cloud revenue growth reported by Alphabet this week. The company's leading position in the AI and cloud computing makes it a compelling earnings trade for next week. MSFT has recently pulled back to a significant support level at $430, which has previously acted as a resistance. This pullback provides a favorable entry point with reduced downside risk after bouncing off that level this week. Microsoft's relative strength to the S & P 500 and momentum are also positive heading into earnings.

Persons: MSFT, Zhang Organizations: Microsoft, Industry, CNBC, NBC UNIVERSAL Locations: MSFT

☆ How to play the pullback in Alphabet, using options to limit your risk during the tech sell-off
▼ + stars: | 2024-07-17 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

The recent pullback in GOOGL's stock price offers an attractive entry point for investors looking to gain exposure to these high-growth areas. We'll review an options strategy to get long exposure while limiting overall risk. GOOGL has recently pulled back slightly within a strong bullish trend, creating an attractive risk reward to seek long exposure. The trade Options on Alphabet Inc. (GOOGL) are not too cheap or expensive based on their implied volatility. To capitalize on the recent pullback and anticipated continued growth, I bought the August 30 $180/$200 Call Vertical for a $7.70 Debit.

Persons: GOOGL Organizations: Inc, YouTube, GOOGL, CNBC, NBC UNIVERSAL

☆ A lower-risk way to bet Morgan Stanley's upcoming earnings catapult stock to a new high
▼ + stars: | 2024-07-10 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

Let's start with a longer-term chart of Morgan Stanley (MS) , which reports on July 16. A breakout above this level would be a clear bullish signal, with earnings as the catalyst. Morgan Stanley has been investing in building out its wealth management business for years and it now accounts for more than 51% of its revenue. The trade With low implied volatility, options on Morgan Stanley are relatively inexpensive. This strategy leverages the relatively low option premiums due to the low IV Rank, aligning with our bullish technical and fundamental thesis for Morgan Stanley.

Persons: Morgan Stanley Organizations: CNBC, NBC UNIVERSAL

☆ An options bet that wins if homebuilder stocks continue to weaken under high rates
▼ + stars: | 2024-07-03 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

Back in late May I published a bearish thesis on the homebuilders and laid out a trade for D.R. Since then, homebuilders have continued to underperform the S & P 500 and as 10-year yields continue to climb back towards 4.5%. I believe that there is further downside and currently there is another opportunity to take another bearish trade on DHI. Just earlier this week the $140 support level was broken and we can now confirm a new bearish trend. The total risk on this trade would be $625 per contract if DHI is above $140 at expiration.

Persons: Horton, homebuilders, DHI Organizations: D.R, CNBC, NBC UNIVERSAL Locations: DHI

☆ How to get long an energy stock with substantial comeback potential, according to options trader
▼ + stars: | 2024-06-26 | by ( Tony Zhang | ) www.cnbc.com time to read: +2 min

SLB (SLB) has been on our radar for some time and its recent underperformance produces an interesting opportunity to gain long exposure with substantial upside potential. That's nearly a 35% discount to the average S & P 500 stock, implying that the technical upside target is well within its historical valuation range. With low volatility, options prices on SLB are extremely inexpensive and would benefit from a simple strategy such as buying a call option. Additionally, we are only risking 7.7% of the stock's price to gain unlimited upside exposure. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: SLB, That's Organizations: CNBC, NBC UNIVERSAL

☆ An options bet that wins if this payments stock has finally bottomed
▼ + stars: | 2024-06-20 | by ( Tony Zhang | ) www.cnbc.com time to read: +2 min

After peaking back in July of 2021, the stock has declined nearly 80% and has spent the last 12 months forming a bottoming formation and has stabilized its decline. The question is, when is the stock potentially ready to breakout higher? Now if we examine the fundamentals, the business has started to look more compelling over the past couple of quarters. The trade Based on the implied volatility, options are not particularly cheap or expensive, but the skew benefits selling a put credit spread. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: PYPL Organizations: PayPal Locations: PYPL

☆ A bullish options trade that wins if the high-end consumer keeps spending on restaurants and travel
▼ + stars: | 2024-06-12 | by ( Tony Zhang | ) www.cnbc.com time to read: +2 min

As consumers become more selective in their spending, restaurants and travel remain bright spots in consumer spending. I'll review a bullish options trade that wins if this trends continues. With net interest income and card fees expected to grow, this discount reflects the upside opportunity for AXP to trade back towards its 52-week highs and beyond. The trade Looking at implied volatility, options are not cheap but also not expensive. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: it's, AXP Organizations: American Express, AXP

☆ Signs are pointing to a Nike rebound. How to play it using options
▼ + stars: | 2024-06-05 | by ( Tony Zhang | ) www.cnbc.com time to read: +2 min

Nike (NKE) is underperforming the market and its sector since mid 2021. With valuations near its historical lows and the potential for China growth to rebound, it is time for investors to start paying attention to Nike again. The trade Options on NKE are expensive now with implied volatility on the higher end of the range. DISCLOSURES: (Long Nike) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: NKE, I'm Organizations: Nike Locations: China

☆ A bearish bet on homebuilders that profits if the consumer starts to weaken
▼ + stars: | 2024-05-29 | by ( Tony Zhang | ) www.cnbc.com time to read: +3 min

Recent weakness in the homebuilders, which are dependent on the consumer, suggests that they may be heading in the direction of the discretionary sector. This suggests that XHB is likely to revisit the bottom of the trading range and potentially break below it. This weakness suggests that it will revisit the $140 support level and potentially break lower, especially as momentum has recently turned negative. So I'm going to use the June 28 weekly expiration and buy the $145/$135 put vertical at a $3.82 debit. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: XHB, DHI Organizations: DR Horton

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