The Big 3: VZ, DXCM, AMAT
•February 19, 2026
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Why It Matters
These trades illustrate how disciplined, option‑based strategies can capture upside in high‑momentum stocks while limiting risk amid market rotation and macro‑data volatility.
Key Takeaways
- •Verizon shows breakout momentum after earnings, targeting $50‑$52.5.
- •Dexcom aims to overcome GLP‑1 headwinds, eyeing $75 resistance.
- •Applied Materials continues semiconductor‑driven rally, targeting $400‑$405 over next months.
- •Trade structures combine call spreads and put sales to limit cost.
- •Market rotation and data uncertainty influence short‑term technical strategies.
Summary
The Trading 360 "Big 3" episode zeroed in on three high‑conviction names – Verizon (VZ), Dexcom (DXCM) and Applied Materials (AMAT) – and laid out option‑based trade ideas for each. Host Marley Kayden and guests Dan Deming and Ben Watson framed the discussion around a market that’s seeing rotation, mixed macro data and geopolitical jitters, while still rewarding stocks with strong technical momentum.
Verizon has rallied nearly 20% year‑to‑date, breaking out of a long sideways range after its January earnings. Technicals show a bull flag, a narrowing range around the 47‑50 area and an RSI perched in overbought territory, suggesting continued upside. The proposed trade buys a 50‑52.5 call spread financed by selling a 47 put, costing roughly $0.10 and positioning the trader to own the stock if it dips to the lower end of the consolidation zone.
Dexcom’s Q4 results beat expectations, helping the medical‑device maker shake off the GLP‑1 headwind that has pressured its stock. The chart shows a potential breakout above the $75 resistance, with the 50‑day moving average acting as a bullish pivot. Dan flagged Dexcom as a possible takeover target, while Ben recommended buying the shares and selling a June 85 call to collect premium and cap upside at a realistic resistance level.
Applied Materials has surged over 110% this year, riding the semiconductor boom. A larger‑scale bull flag points to a symmetric target near $400‑$405, with the 50‑day moving average providing dynamic support. The trade example uses a call fly (360‑400‑440) to capture the expected range while limiting downside to the net premium paid. Across all three names, the hosts stress that defined‑risk option structures let traders participate in momentum while protecting against short‑term volatility.
Overall, the segment underscores that rotation into growth‑oriented, technically strong stocks remains a theme despite macro uncertainty. By pairing momentum‑driven entries with cost‑efficient spreads, investors can lock in upside potential while keeping risk tightly bounded, a strategy especially relevant as earnings cycles wind down and data releases drive market direction.
Original Description
Dan Deming sees the rotation trade continuing if markets can hold recent momentum this trading week. As for the Big 3, he sees a breakout candidate in Verizon (VZ), DexCom's (DXCM) potential to continue its recent upside momentum, and Applied Materials (AMAT) serving as a rising giant in the semiconductor trade. Dan offers example options trades for his Big 3 while @CharlesSchwab Ben Watson takes investors through key levels for investors to watch.
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