Top 10 Stocks to Watch: February 2025

Bulls are regaining dominance in the last few days, but what will February bring?

Early January saw a continuation of a bearish pattern in the market, dipping to $5,874.75, then bouncing up to a lower-high at $6,068.25, followed by a drop to a new January low at $5,809.00 on Jan. 13. 

From then through Jan. 24, price rallied to new all-time highs in the S&P 500 at $6.125.25. Price action in the last few days has retraced this rally down to $5,948.00, then rallied back to our current price around $6,070.00.  

Price action between Dec. 17 and Jan. 13 represents a bearish market stance, posting lower-highs and lower-lows. Price action since Jan. 13 suggests bulls have regained their grip on the market. Late January price action indicates a bullish market stance once again. 

Continued price action between $5,855.00 and $6,162.25 is likely in the coming weeks, but I would not be surprised if bulls push to new all-time highs in the next couple of weeks as well. 

A note on earnings trades 

To capture the bulk of the volatility of earnings announcements, earnings trades are often executed either the day before or on the day of the earnings announcement.

However, placing earnings trades days or weeks before an earnings event could lead to early profit-taking.  

Alternatively, placing a trade shortly after an earnings announcement can be a strategic choice to circumvent the binary nature of the event. Evaluate each trade in a way that enables you to execute the position that matches your strategy.   

If you're considering a trade going into an earnings event, one approach is to initiate the position in the monthly options contract that follows the earnings report. This strategy offers flexibility. Should you need to defend your position—perhaps because of unexpected market movements—you have the choice to 'roll' it out to the subsequent monthly options. Rolling out the position in this way enables you to extend its duration and potentially collect more premium, providing a buffer against market volatility. 

Top 10 stocks to watch

1. Palantir (PLTR) – Feb. 3, After the close 
2. PayPal (PYPL) – Feb. 4, Before the open 
3. Advanced Micro Devices (AMD) – Feb. 4, After the close
4. Alphabet (GOOGL) – Feb. 4, After the close 
5. Uber Technologies (UBER) – Feb. 5, Before the open 
6. The Walt Disney Company (DIS) – Feb. 5, Before the open 
7. Amazon (AMZN) – Feb. 6, After the close 
8. Coinbase (COIN) – Feb. 13, After the close 
9. DraftKings (DKNG) – Feb. 13, After the close 
10. Nvidia (NVDA) – February 26, After the close 

Palantir Technologies 

Palantir Technologies (PLTR) provides big data analytics software, primarily for government agencies and large institutions. It’s up 4.58% year-to-date. Its IVR is 94.4, with January IVx at 89.4, February IVx at 75.7, and its liquidity is rated four out of four on the tastytrade platform. 

PLTR is a medium-priced stock, so medium-sized accounts could consider undefined risk positions. 20-delta short strangles set up well. These can be converted to $20 wide iron condors if you’d like to define your risk. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

PayPal

PayPal (PYPL) operates a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. PYPL is up 3.44% year-to-date. Its IVR is 60.8, with January IVx at 50.8, February IVx at 41.8, and its liquidity is rated four out of four on the tastytrade platform. 

PYPL is a medium-priced stock, so medium-sized accounts could consider undefined risk positions. 19-delta short strangles set up well. These can be converted to $20 wide iron condors if you’d like to define your risk. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

Advanced Micro Devices

Advanced Micro Devices (AMD) designs and manufactures microprocessors, graphics processors, and related technology for consumers and businesses. AMD is down 6.3% year-to-date. Its IVR is 71.5, with January IVx at 60.2, February IVx at 53, and its liquidity is rated four out of four on the tastytrade platform. 

AMD is a medium-priced stock, so medium-sized accounts could consider undefined risk positions. 20-delta short strangles set up well. These can be converted to $20 wide iron condors if you’d like to define your risk. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

Alphabet

Alphabet (GOOGL) engages in diversified business activities, including search engines, cloud computing, software and advertising technology. GOOGL is up 2.24% year-to-date. Its IVR is 62.7, with January IVx at 41.6, February IVx at 34.9, and its liquidity is rated four out of four on the tastytrade platform. 

GOOGL is a high-priced stock, so large-sized accounts could consider undefined risk positions. 20-delta short strangles set up well. These can be converted to $20 wide iron condors if you’d like to define your risk. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

Uber

Uber Technologies (UBER) offers ride-hailing services, food delivery and a freight transportation platform through its app. UBER is up 10.44% year-to-date. Its current IVR is 64, with January IVx at 53.6, February IVx at 45.8, and its liquidity is rated four out of four on the tastytrade platform. 

UBER is a medium-priced stock, so medium-sized accounts could consider undefined risk positions. 20-delta short strangles set up well. These can be converted to $20 wide iron condors if you’d like to define your risk. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

Disney

The Walt Disney Company (DIS) operates as a diversified international family entertainment and media enterprise that includes theme parks, film production and television broadcasting. DIS is up 0.73% year-to-date. Its IVR is 58.1, with January IVx at 39.2, February IVx at 32, and its liquidity is rated four out of four on the tastytrade platform. 

DIS is a medium-priced stock, so medium-sized accounts could consider undefined risk positions. 20-delta short strangles set up well. These can be converted to $20 wide iron condors if you’d like to define your risk. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 
 

Amazon

Amazon.com (AMZN) focuses on e-commerce, cloud computing, digital streaming and artificial intelligence. AMZN is up 8.07% year-to-date. Its IVR is 62.8, with January IVx at 41.9, February IVx at 35.1, and its liquidity is rated four out of four on the tastytrade platform. 

AMZN is a high-priced stock, so large-sized accounts could consider undefined risk positions. 20-delta short strangles set up well. These can be converted to $20 wide iron condors if you’d like to define your risk. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

Coinbase

Coinbase Global (COIN) provides a platform for buying, selling, transferring and storing digital currency. COIN is up 10.22% year-to-date. Its IVR is 34, with January IVx at 82, February IVx at 78.5, and its liquidity is rated three out of four on the tastytrade platform. 

COIN is a very high-priced stock, so only the very large-sized account could consider undefined risk positions. Most accounts will want to consider defined risk positions. 20-delta $20 wide short iron condors set up well. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

DraftKings

DraftKings (DKNG) offers sports betting, daily fantasy sports contests and casino games. DKNG is up 12.43% year-to-date. Its current IVR is 36, with January IVx at 56, February IVx at 53.3, and its liquidity is rated three out of four on the tastytrade platform. 

DKNG is a low-priced stock, so smaller-sized accounts could consider undefined risk positions. 21-delta short strangles set up well. These can be converted to $10 or $20 wide iron condors if you’d like to define your risk. Directional at-the-money short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

Nvidia

Nvidia (NVDA) specializes in the design and manufacture of graphics processing units (GPUs) and related hardware and software for gaming and professional markets. NVDA is down 6.59% year-to-date. Its IVR is 45.3, with January IVx at 63.6, February IVx at 66.3, and its liquidity is rated four out of four on the tastytrade platform. 

NVDA is a medium/high-priced stock, so medium and larger-sized accounts could consider undefined risk positions. 20-delta short strangles set up well. These can be converted to $20 wide iron condors if you’d like to define your risk. Directional short spreads can be set up in either direction with your preference of risk if you have a directional assumption. 

Ryan Sullivan is an active options and forex trader and programming producer for the tastylive network.

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