Trade Alert: After The War

Desalination plants in the region will need to be repaired. We have an options trade for that. Plus four additional setups related to the AI buildout.

Postwar Reconstruction

President Trump’s revised deadline for Iran to reopen the Strait of Hormuz is now Tuesday at 8:00 p.m. Eastern, and his public threat remains the same: if there’s no deal and the Strait stays closed, the U.S. military will destroy Iran’s power plants and bridges. Iran has warned that it will hit Gulf infrastructure and other targets in retaliation—not that they haven’t already done some of this. Iranian strikes have already hit petrochemical facilities in Kuwait, Bahrain, and the UAE, and in Kuwait, drones also targeted water desalination plants, in addition to hitting oil infrastructure there..

Last month, we placed bullish trades on companies positioned to benefit from repairing that oil infrastructure.

Today, we’re adding a new trade on a company that supplies key components to desalination plants in the Persian Gulf.

Plus, Keeping Our Eyes On The AI Buildout

We are also adding four other bullish, defined-risk setups today. Two are Top Names in semiconductor equipment. Two more come from our Market Watchers X list, tied to power and emissions-control infrastructure and to semiconductor test and inspection. But the common thread is the same one we’ve been emphasizing for weeks now: we think this war is more likely to end in weeks than months, and we want exposure to the kinds of names that should benefit once the market can start looking past the fighting. At the same time, the tape is still messy, volatility is still elevated, and we do not get rewarded for chasing. We either get filled at prices that make sense, or we move on.

Today’s Postwar Reconstruction Trade

Desalination infrastructure reconstruction theme

The stock is Energy Recovery (ERII 0.00%↑), and our trade is a combo consisting of these three legs:

1. Buying two of the Aug 21, 2026 $10 calls,

2. Selling two of the Aug 21, 2026 $10 puts, and

3. Buying two of the Aug 21, 2026 $7.50 puts,

For a max net debit of $0.90. The max gain on one combo (2 contracts per leg) is unlimited, and the max loss per combo is $680. This trade filled at $0.90.

Today’s First Top Names Trade

Semiconductor equipment / AI capex theme

The stock is Camtek (CAMT 0.00%↑), and our trade is a combo consisting of these four legs:

1. Buying the Aug 21, 2026 $175 call,

2. Selling the Aug 21, 2026 $185 call,

3. Selling the May 15, 2026 $140 put, and

4. Buying the May 15, 2026 $135 put,

For a max net debit of $1.75. The max gain on one contract is $825, the max loss is $675. This trade filled at $1.75.

Today’s Second Top Names Trade

Semiconductor equipment / advanced packaging theme

The stock is Kulicke and Soffa Industries (KLIC 0.00%↑), and our trade is a hybrid combo consisting of these four legs:

1. Buying the Oct 16, 2026 $75 call,

2. Selling the May 15, 2026 $75 call,

3. Selling the May 15, 2026 $55 put, and

4. Buying the May 15, 2026 $50 put,

For a max net debit of $3.40. The max gain one contract is $737 (if the short call expires in-the-money; if it expires out-of-the-money, or we buy-to-close it before then, our upside will be uncapped), the max loss is $840. This trade hasn’t filled yet.

Today’s First Market Watchers Trade

Power / emissions-control / AI power-capacity theme

The stock is Babcock & Wilcox Enterprises (BW 0.00%↑), and our trade is a hybrid combo consisting of these four legs:

1. Buying two of the Aug 21, 2026 $20 call,

2. Selling two of the May 15, 2026 $21 call,

3. Selling two of the May 15, 2026 $15 put, and

4. Buying two of the May 15, 2026 $14 put,

For a max net debit of $2.05. The max gain on one combo (2 contracts per leg) is $693 (if the short call expires in-the-money; if it expires out-of-the-money, or we buy-to-close it before then, our upside will be uncapped), and the max loss is $570. This trade filled at $1.90.

Today’s Second Market Watchers Trade

Semiconductor test / inspection / packaging theme

The stock is Cohu (COHU 0.00%↑), and our trade is a hybrid combo consisting of these four legs:

1. Buying the Aug 21, 2026 $35 call,

2. Selling the May 15, 2026 $40 call,

3. Selling the May 15, 2026 $30 put, and

4. Buying the May 15, 2026 $25 put,

For a max net debit of $1.95. The max gain on one contract is $560 (if the short call expires in-the-money; if it expires out-of-the-money, or we buy-to-close it before then, our upside will be uncapped), and the max loss is $695. This trade hasn’t filled yet.

Unless otherwise indicated, all trades are day orders and will be canceled at the end of the day if they don’t fill.

Exiting These Trades

My plan:

Energy Recovery (ERII)

• Calls (legs 1 & 2): Open a GTC limit order to sell one of the Aug 21st, 2026 $10 calls at $6. If that fills, I’ll share a limit price for the second Aug 21st, 2026 $10 call in the comments here and via chat/email. If it doesn’t fill, I’ll lower the GTC limit price on both calls as needed as we approach expiration.

• Put spread (legs 2 & 3): Open a GTC limit order to exit the put spread at a net debit of $0.20, and lower that price as we approach expiration.

Camtek (CAMT)

• Call Spread (legs 1 & 2): Open a GTC limit order to exit the call spread at a net credit of $8, and lower that price, if necessary, as we approach expiration.

• Put spread (legs 3 & 4): Open a GTC limit order to exit the put spread at a net debit of $0.20, and raise that if necessary as we approach expiration.

Kulicke and Soffa Industries (KLIC) (assuming it fills)

• Calls / calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the short May 15th, 2026 $75 call at $0.20, and raise that price if necessary as we approach the May expiration. If the short May $75 call is in-the-money at expiration, I’ll sell the long Oct 16th, 2026 $75 call and use part of the proceeds to buy-to-close the short May call. If I buy-to-close the short call before expiration or it expires out-of-the-money, I’ll share a GTC limit sell price for the long October $75 call in the comments here and via chat/email.

• Put spread (legs 3 & 4): Open a GTC limit order to exit the put spread at a net debit of $0.20, and raise that if necessary as we approach expiration.

Babcock & Wilcox Enterprises (BW)

• Calls / calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the short May 15th, 2026 $21 call at $0.20, and raise that price if necessary as we approach the May expiration. If the short May $21 call is in-the-money at expiration, I’ll sell the long August 21st, 2026 $20 call and use part of the proceeds to buy-to-close the short May call. If I buy-to-close the short call before expiration or it expires out-of-the-money, I’ll share a GTC limit sell price for the long August $20 call in the comments here and via chat/email.

• Put spread (legs 3 & 4): Open a GTC limit order to exit the put spread at a net debit of $0.10, and raise that if necessary as we approach expiration.

Cohu (COHU) (assuming it fills)

• Calls / calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the short May 15th, 2026 $40 call at $0.20, and raise that price if necessary as we approach the May expiration. If the short May $40 call is in-the-money at expiration, I’ll sell the long August 21st, 2026 $35 call and use part of the proceeds to buy-to-close the short May call. If I buy-to-close the short call before expiration or it expires out-of-the-money, I’ll share a GTC limit sell price for the long August $35 call in the comments here and via chat/email.

• Put spread (legs 3 & 4): Open a GTC limit order to exit the put spread at a net debit of $0.20, and raise that if necessary as we approach expiration.