How to Trade Options on Earnings – DASH Case Study
At the end of last year, I named DoorDash (DASH) one of my top picks for 2025. In my 2025 Market Outlook, I said the stock could hit the $225 to $240 area — which I still think is doable. But today I want to show you how Power Plays Options (my new options alert newsletter) navigated the company’s Q4 earnings report on February 11. We’ll go over: Why I used a call spread instead of straight calls Why sacrificing some reward led to a bigger gain How you can get my next options idea For reference, here’s my take on DASH from the Market Outlook Report: (click to enlarge) The DoorDash situation was tricky for several reasons. I liked the technical setup and the stock’s leadership status. So I wanted to be long via call options. But it wasn’t that simple. The stock had already gone up 16% in 2025 after a 70% run last year. And the options were expensive. The market was pricing in an 8.9% move even though the stock tended to move about 6.5% after earnings. So I decided to use a February 21 $202.50 X $215 call spread. (meaning long the $202.50’s, and short the $215’s) The spread was at $3.05 when we sent the alert out, while the straight February $202.50 calls were at $5.60. Why this particular call spread position? Because while a call spread capped my upside potential, it lowered the cost of the position, offsetting the expensive nature of the calls. So if DoorDash went down or sideways after earnings, I’d lose much less than if I’d taken straight calls. And yes, despite what you’ve heard on TikTok… real traders lose money sometimes. In any case, I didn’t see DoorDash getting much above $215 in even the best-case scenario. I used a February 21 expiration to give me a little extra time in the position. This way, if the stock didn’t go straight up, I’d have more room to let it rebound. And that’s exactly what happened. DoorDash stock got hit on Wednesday after earnings… and then rose like a beast on Thursday before extending Friday as traders refocused on the long-term growth story. And here’s how the entire idea has gone so far in Power Plays Options. Note, this is a chart of the actual call spread — not DASH stock: We added the spread at $3.05 on Tuesday, took off half on the open today at $4.32. And as of Friday 2/14 at 12:45 pm ET, we are letting the second half ride with the spread over $7.40 — a 100%+ move. (note: there is a chance Power Plays Options will close out the remainder by the time you read this) Over the same time span, the straight $202.50 calls went from $5.60 to $8.80, up 57%. That’s a nice gain — but it’s actually a smaller percentage increase than the $202.50 X $215 call spread we used in Power Plays Options. The straight calls have a smaller gain because they were so much more expensive in the first place. So by sacrificing some potential return, I actually increased my reward. Now, not every idea works out like this — but it’s awesome when they do! Featured: Get My #1 Options Idea Each Week If you like actionable options ideas delivered in plain English every week, join Power Plays Options today. It’s just $199 to get started. See why now’s the right time to join. *Scott Redler Positions Disclosure as of 2025-02-14 at 12.19.34 PM
Continue Reading -->Why I Bought Apple
Scott Redler appeared on Fox Business to go over the market action: Watch the latest video at foxbusiness.com Scott goes over: The impact of the market lifting after the hot CPI report so fast What Apple (AAPL) and Tesla (TSLA) told him about the action Why he got back in Apple, and the impact of the Alibaba (BABA) news The reason Meta (META) is tricky now The new China name he got into on Wednesday Why the PPI report has less “shock value” than the CPI What traders should really pay attention to – the price action How Treasury yields impact equities And more! Featured: Join Scott Redler’s Plays for $99 Get Scott’s #1 idea each week. That’s 52 weeks for just $99. (not a typo) Be on the list for the next idea: See why now’s the right time to join. *Scott Redler Positions Disclosure as of 2025-02-13 at 10.13.53 AM
Continue Reading -->Why Tempus AI Is Going to $120
Tempus AI (TEM) has been a monster — and JR sees more good times ahead. JR shows you: Why the SPX needs a shakeout like we saw in August, which could set up a buying opportunity The risk of a “flash crash” Why he likes to trade “sticks of dynamite” His favorite types of patterns, and why they may not work now The strength in REITs His case for Nancy Pelosi favorite Tempus AI (TEM) going to $120 Why Alaska Air (ALK) can go to $100 for a 35%+ gain Why AXIS Capital (AXS) can hit $150 for a 65%+ gain Why Crowdstrike (CRWD) is going to $500 for a potential 15% gain A huge potential breakout coming in a major pharma name And MORE!
Continue Reading -->The 1 China Stock I’d Buy Right Now
Sami says it’s too late to buy China stocks like Alibaba (BABA)… except for one name he still likes: Sami goes over: Why it might be late to chase Tesla (TSLA) How he got surprised by Alibaba (BABA) The only China stock he is still bullish on His single most interesting idea – a stock that’s been a total mess for years The power of his Monthly Transition A pattern, which keeps showing up in Sami’s wins By the way, if you want to accelerate your trading progress in a big way, consider joining Sami’s Mentorship starting in April.
Continue Reading -->How David Prince Builds A Trade
Trading isn’t just about charts for David Prince. He finds conviction in a trade by building a full thought package that includes many other pieces of information. David explains using Nvidia (NVDA) as an example: Learn: Why David was buying NVDA at 113 last week The indicators he uses in his trading that aren’t on charts And the importance of knowing the fundamentals of a company David is hosting a free webinar on Wednesday, February 12. Sign up here!
Continue Reading -->This Stock Could Drop 46%
Tesla (TSLA) stock has been shaky – but Sami Abusaad still likes it long-term, based on the chart. Sami goes over: How to know if Friday’s big red bar means anything What the 20-day moving average is saying Why calling a breakout might be ambitious His overall bias right now Why Ford (F) could drop to $5 for a 46% drop Where the online dating stocks like Bumble (BMBL) are going A little-known China name Sami is looking to plah By the way, if you want to accelerate your trading progress in a big way, consider joining Sami’s Mentorship starting in April.
Continue Reading -->Should You Be Short PLTR? David Prince Answers
Many traders will tell you Palantir (PLTR) is overvalued and you should be short. But the name keeps running higher in 2025 and hurting those shorts. David Prince explains why shorting a name like this purely on valuation isn’t always the best idea: David also discusses: The power of narrative to a stock price Why CAVA has longterm potential How he’s used more than charts to trade NVDA The power of a trailer with a trade like TEM And more! David is hosting a free webinar next Wednesday, February 12. Sign up here!
Continue Reading -->Tesla Is Going UP. Yes, I Said UP.
Tesla (TSLA) stock has been shaky – but Sami Abusaad still likes it long-term, based on the chart. Sami goes over: Why Tesla is actually in a normal pullback inside an uptrend Why he has a long-term position in the stock now His favorite Chinese stocks right now, including Alibaba (BABA) The importance of the monthly time frame in the China names The health care stock that just triggered on the weekly chart A REIT that could explode (these are normally slow moving) His gigantic price target on Affirm Holdings (AFRM) based on the monthly chart action We also go over why you should consider joining Sami’s Mentorship starting in April.
Continue Reading -->GOOGL May Be The Best MAG7 Earnings Setup
Alphabet (GOOGL) is the next MAG7 name to report Q4 earnings after the market close on Tuesday. David Prince shares what the market is focused on for this report: GOOGL typically releases financial results right after the market closes and the quarterly conference call is scheduled for 4:30 p.m. ET. As of Monday’s close, the expected move on this name is +/- $11.72 or 5.8%. Here’s what the market is expecting GOOGL to report: Revenue: $96.67 billion, +9.5% from Q3 EPS: $2.13, +0.4% from Q3 Current analyst ratings on GOOGL: 49 Buy, 12 Hold, 0 Sell $216.37 Average Price Target GOOGL has beat both revenue and earnings expectations for the past 4 quarters in a row. But the 1-day move after earnings has been lower for 2 out of 4 quarters. Take a look: Data: Koyfin And here’s a look at how the stock has moved since the company last reported earnings on October 29, 2024: Want to join David Prince in the Inner Circle? Apply to join here!
Continue Reading -->This Market Is a MESS – But Look at This Beautiful Monthly Chart
Sami also goes over: The problem with the current “Frog in a Blender” pattern Why it’s hard to objectively analyze the market Where SPY and QQQ can test short-term The beautiful monthly chart in Affirm Holdings (AFRM) that indicates a powerful long-term play Why IBM (IBM) looks good even after its big earnings gap The amazing pattern in Roku (ROKU) – and where Sami wants to get in 6 names he likes on the short side
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