The Smart Leverage Setup for Expedia (EXPE)

Dear WallStreetZen Member,

Welcome to the first edition of your weekly Smart Leverage Alert. Every Thursday, we’ll send you one high-conviction options opportunity our research team believes is positioned for outsized returns. Our Editor will explain the setup, then show you exactly how to structure the trade using our Smart Leverage approach to options.

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This week, it's Expedia Group (EXPE).

The travel stock plunged roughly 35% after the Iran conflict sent oil prices soaring and investors rushed out of the sector. But while the stock sold off, the business never skipped a beat.

Expedia has now beaten EPS estimates for 12 straight quarters, including a May report that delivered a 41% earnings surprise and 15% year-over-year revenue growth. Meanwhile, the macro backdrop has flipped. Since the June 19 peace agreement between the U.S. and Iran, oil has fallen more than 20% and gas prices have dropped back below $3 per gallon, removing a major headwind for travel demand.

Just as importantly, Expedia owns an unmatched collection of travel brands — including Hotels.com, Vrbo, Orbitz, Travelocity, Hotwire, and Trivago — that gives it tremendous competitive scale.

Our Zen Ratings model reinforces the opportunity. EXPE earns an A (Strong Buy) rating, ranks in the top 2% of more than 4,600 stocks, and is currently the #1-ranked Travel stock.

Even more impressive, it ranks in the top 1% for Value and the top 2% for Financials, while Growth lands in the top 15%. That rare combination suggests investors are getting a high-quality business at a discounted valuation.

Our Logic

With Zen Options Essentials, we use "Smart Leverage" — Deep-In-The-Money options that let you control shares for a fraction of the cost, with your maximum risk strictly defined from day one.

The "Smart Leverage" Setup: EXPE Long Call

Given the bullish fundamental case and the macro tailwind now actively in motion, here's how we're structuring the trade using Smart Leverage — Deep-In-The-Money calls that move nearly dollar-for-dollar with the stock, but with strictly defined risk from day one.

Instead of committing $25,588 to own 100 shares outright, a Deep-In-The-Money Call lets you control those same shares for $6,220.

• The Play: $210 Strike Call (Expiring Dec 18, 2026)
• Delta: 0.7857 — Right in our sweet spot. This option moves nearly dollar-for-dollar with the stock. You get the upside with significantly less capital at risk.
• Intrinsic Value: ~74% — Nearly three-quarters of what you pay is real value, not time decay. This is what separates a Smart Leverage setup from the kind of speculative options trades that blow up amateur accounts.
• Leverage Multiple: 2.23x — A conservative entry within our preferred range. The deep ITM strike provides meaningful downside protection while still amplifying returns versus buying shares outright.
• The Target: For this position to double (+100%), EXPE only needs to reach approximately $327.18 — a roughly 28% move in the stock that produces a 100% return on the option premium.

Why Options Over Shares?

A 28% move in EXPE stock would be a great return for shareholders. In this Deep-In-The-Money option, that same move has the potential to double your investment while putting only $6,220 at risk instead of $25,588.

That's the power of Smart Leverage: stock-like upside with a fraction of the capital and strictly defined risk from day one.

What To Do Next?

EXPE is just one of the setups our Zen Options Essentials TradeFinder identified this week.

And the best part? You don't need to spend hours doing research to find these trades. The TradeFinder does the heavy lifting — scanning for Deep-In-The-Money options with the optimal Delta, the right Intrinsic Value, and the right Leverage Multiple — so you can evaluate a trade like this in minutes.

How is that possible?

Because the best options trades aren't about picking exotic strategies or timing the market perfectly. They're about finding great stocks…and using Smart Leverage to control your risk while amplifying your upside.

EXACTLY what the Zen Ratings model is built to find.

EXACTLY what this methodology has been delivering.

If you'd like to see how this entire methodology works, start by watching our presentation, "Options Trading with the Zen Ratings." It walks through the Smart Leverage framework, the TradeFinder, and how we identify these opportunities step by step.

Options Trading with the Zen Ratings >

Or, perhaps you are ready to start using Smart Leverage by becoming a Zen Options Essentials member. Click below to join: 

Zen Options Essentials >

Happy Investing,

Mijusko Sibalic

Senior Writer, Zen Options Essentials

Want to get in touch? Email us at news@wallstreetzen.com.