5 Technically Bullish Stocks Perfectly Suited for Call Options, as Investors Chase Momentum or Position for a Sharp Reversal

Stocks are showing divergence as the market reaches record highs, with AI-driven names, along with semiconductor and crypto-meme sectors, leading much of the rally, while some tech giants behind the AI race and traditional businesses have been punished. Investors can still chase momentum, as certain names exhibit ongoing technical strength while others present compelling buy-the-dip opportunities after being oversold. With market sentiment still favorable, choosing the right setups could help capture excess alpha. Here are our top five to buy now.

Meta (META)

The social media giant’s shares broke through resistance and hit a record high with a sharp jump on Tuesday, signaling a fully bullish chart. Momentum could continue as its market cap nears $1.98 trillion, and it wouldn’t be surprising to see headlines soon announcing Meta’s break above the $2 trillion mark. As investors fixate on round numbers, the share price also appears poised to challenge the psychological $800 level. Meanwhile, the RSI reading of 70 indicates a mild bullish sentiment, with room to turn more extreme under favorable macro conditions. The technical picture remains firmly bullish.

Microsoft (MSFT)

Microsoft’s shares have been consolidating after the initial post-earnings jump, and bullish momentum is building again. The upward slope of the MA (3, 7, 10) suggests a supportive chart structure, echoing the slow bull phase seen from May to July, which could be repeating now. With a market cap of $3.93 trillion, the first target is reclaiming $4 trillion, with potential to hold above that level on sustained strength. The company remains well-positioned to benefit from AI momentum and its deep integration with OpenAI.

IBM (IBM)

IBM shares fell sharply after its Q2 earnings miss, as AI-driven growth failed to deliver a sustained boost. The RSI has dropped to 10.6, a level not seen since last October, signaling an extremely oversold condition. Back then, the stock rebounded 4% in a week as RSI normalized. A gradual buy-the-dip approach appears attractive now, with selling pressure possibly pushing RSI even lower for an improved entry point. For those who believe in IBM’s long-term potential in AI and quantum computing, holding through this weakness could be rewarding.

Eli Lilly (LLY)

Eli Lilly’s shares came under pressure after its oral weight-loss pill failed to match the strong results of rival Novo Nordisk, despite earnings and guidance comfortably beating expectations. The stock is now consolidating after the initial wave of selling, as investors look for a bottom before reloading. The fundamentals remain solid, supported by robust weight-loss drug demand and ongoing commercialization efforts. Additionally, some insurance providers are preparing to cover weight-loss treatments, which could further boost sales. From both a technical and fundamental perspective, LLY is a strong buy at current levels.

American Express (AXP)

American Express shares, along with Visa, have been pressured by the rise of stablecoins, which promise cheaper and more efficient payment processing. While AXP remains in a downward trend, a recent bounce has started to challenge that trajectory, with MA (3, 7) turning upward—though confirmation is still needed. The company’s long-standing loyalty programs tied to travel and dining continue to offer resilience against the stablecoin challenge. Moreover, the recovery in the airline sector could provide an additional tailwind for future growth.