{"id":77216,"date":"2025-02-14T12:24:15","date_gmt":"2025-02-14T17:24:15","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=77216"},"modified":"2025-02-14T12:54:00","modified_gmt":"2025-02-14T17:54:00","slug":"scott-redler-dash-options-case-study","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2025\/02\/14\/scott-redler-dash-options-case-study\/","title":{"rendered":"How to Trade Options on Earnings &#8211; DASH Case Study"},"content":{"rendered":"<p>At the end of last year, I named<strong> DoorDash<\/strong> (DASH) one of my top picks for 2025.<\/p>\n<p>In my 2025 Market Outlook, I said the stock could hit the $225 to $240 area &#8212; which I still think is doable. But today I want to show you how <span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/vp301.isrefer.com\/go\/ppored\/reddog\/web\">Power Plays Options<\/a><\/strong><\/span> (my new options alert newsletter) navigated the company's Q4 earnings\u00a0 report on February 11.<\/p>\n<p>We'll go over:<\/p>\n<ul>\n<li>Why I used a call spread instead of straight calls<\/li>\n<li>Why sacrificing some reward led to a bigger gain<\/li>\n<li>How you can get my next options idea<\/li>\n<\/ul>\n<p>For reference, here's my take on DASH from the Market Outlook Report:<\/p>\n<p><a href=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1.png\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-77229\" src=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1.png\" alt=\"\" width=\"338\" height=\"437\" srcset=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1.png 816w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-232x300.png 232w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-791x1024.png 791w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-116x150.png 116w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-768x994.png 768w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-62x80.png 62w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-170x220.png 170w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-77x100.png 77w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-184x238.png 184w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-321x415.png 321w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-376x487.png 376w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/2025-Scott-Redler-Market-Outlook-Report-1-460x595.png 460w\" sizes=\"(max-width: 338px) 100vw, 338px\" \/><\/a><br \/>\n<em>(click to enlarge)<\/em><\/p>\n<p>The DoorDash situation was tricky for several reasons.<\/p>\n<p>I liked the technical setup and the stock's leadership status. So I wanted to be long via call options.<\/p>\n<p>But it wasn't that simple.<\/p>\n<p>The stock had already gone up 16% in 2025 after a 70% run last year.<\/p>\n<p>And the options were expensive.<\/p>\n<p>The market was pricing in an 8.9% move even though the stock tended to move about 6.5% after earnings.<\/p>\n<p>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)<\/p>\n<p>The spread was at $3.05 when we sent the alert out, while the straight February $202.50 calls were at $5.60.<\/p>\n<p>Why this particular call spread position?<\/p>\n<p>Because while a call spread capped my upside potential, it lowered the cost of the position, offsetting the expensive nature of the calls.<\/p>\n<p>So if DoorDash went down or sideways after earnings, I'd lose much less than if I'd taken straight calls.<\/p>\n<p>And yes, despite what you've heard on TikTok&#8230; real traders lose money sometimes.<\/p>\n<p>In any case, I didn't see DoorDash getting much above $215 in even the best-case scenario.<\/p>\n<p>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.<\/p>\n<p>And that's exactly what happened.<\/p>\n<p>DoorDash stock got hit on Wednesday after earnings&#8230; and then rose like a beast on Thursday before extending Friday as traders refocused on the long-term growth story.<\/p>\n<p>And here's how the entire idea has gone so far in <span style=\"text-decoration: underline;\"><strong><a href=\"https:\/\/vp301.isrefer.com\/go\/ppored\/reddog\/web\">Power Plays Options<\/a><\/strong><\/span>. Note, this is a chart of the actual call spread &#8212; not DASH stock:<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-77231\" src=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1.png\" alt=\"\" width=\"960\" height=\"960\" srcset=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1.png 960w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-300x300.png 300w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-150x150.png 150w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-768x768.png 768w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-80x80.png 80w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-220x220.png 220w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-100x100.png 100w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-238x238.png 238w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-415x415.png 415w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-487x487.png 487w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Scott-DASH-February-14-2025-1-595x595.png 595w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>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 &#8212; a 100%+ move.<\/p>\n<p>(note: there is a chance Power Plays Options will close out the remainder by the time you read this)<\/p>\n<p>Over the same time span, the straight $202.50 calls went from $5.60 to $8.80, up 57%. That's a nice gain &#8212; but it's actually a smaller percentage increase than the $202.50 X $215 call spread we used in <strong><a href=\"https:\/\/vp301.isrefer.com\/go\/ppored\/reddog\/web\">Power Plays Options<\/a><\/strong>.<\/p>\n<p>The straight calls have a smaller gain because they were so much more expensive in the first place.<\/p>\n<p>So by sacrificing some potential return, I actually increased my reward.<\/p>\n<p>Now, not every idea works out like this &#8212; but it's awesome when they do!<\/p>\n<h3><strong>Featured: Get My #1 Options Idea Each Week<\/strong><\/h3>\n<p><a href=\"https:\/\/vp301.isrefer.com\/go\/ppored\/reddog\/web\"><img decoding=\"async\" class=\"alignnone size-full wp-image-76673\" src=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small.png\" alt=\"\" width=\"517\" height=\"97\" srcset=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small.png 517w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small-300x56.png 300w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small-150x28.png 150w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small-80x15.png 80w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small-220x41.png 220w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small-250x47.png 250w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small-280x53.png 280w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/01\/power-plays-options-logo-small-510x96.png 510w\" sizes=\"(max-width: 517px) 100vw, 517px\" \/><\/a><\/p>\n<p>If you like actionable options ideas delivered in plain English every week, join Power Plays Options today.<\/p>\n<p>It's just $199 to get started.<\/p>\n<p><strong><a href=\"https:\/\/vp301.isrefer.com\/go\/ppored\/reddog\/web\">See why now's the right time to join.<\/a><\/strong><\/p>\n<p><em>*Scott Redler Positions Disclosure as of 2025-02-14 at 12.19.34 PM<\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-77217\" src=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM.png\" alt=\"\" width=\"413\" height=\"263\" srcset=\"https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM.png 547w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM-300x191.png 300w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM-150x95.png 150w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM-80x51.png 80w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM-220x140.png 220w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM-157x100.png 157w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM-236x150.png 236w, https:\/\/blog.t3live.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-14-at-12.19.34-PM-374x238.png 374w\" sizes=\"(max-width: 413px) 100vw, 413px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8212; 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&#8217;s Q4 earnings\u00a0 report on February 11. We&#8217;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&#8217;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&#8217;s leadership status. So I wanted to be long via call options. But it wasn&#8217;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&#8217;s, and short the $215&#8217;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&#8217;d lose much less than if I&#8217;d taken straight calls. And yes, despite what you&#8217;ve heard on TikTok&#8230; real traders lose money sometimes. In any case, I didn&#8217;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&#8217;t go straight up, I&#8217;d have more room to let it rebound. And that&#8217;s exactly what happened. DoorDash stock got hit on Wednesday after earnings&#8230; and then rose like a beast on Thursday before extending Friday as traders refocused on the long-term growth story. And here&#8217;s how the entire idea has gone so far in Power Plays Options. Note, this is a chart of the actual call spread &#8212; 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 &#8212; 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&#8217;s a nice gain &#8212; but it&#8217;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 &#8212; but it&#8217;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&#8217;s just $199 to get started. See why now&#8217;s the right time to join. *Scott Redler Positions Disclosure as of 2025-02-14 at 12.19.34 PM<\/p>\n","protected":false},"author":4,"featured_media":75075,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[736],"tags":[],"class_list":["post-77216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-scott-redler-dog-bytes"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/77216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=77216"}],"version-history":[{"count":11,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/77216\/revisions"}],"predecessor-version":[{"id":77219,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/77216\/revisions\/77219"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/75075"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=77216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=77216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=77216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}