Trade Alert: AI Buildout And Reindustrialization
A bullish options bet on a small cap power electronics company positioned to profit from both trends.
A Small-Cap Power Pick For Reindustrialization
One of the names on our Market Watchers X list has been on my radar for a while: a small-cap power-electronics supplier that sits squarely in the reindustrialization and AI buildout theme. It makes the unsexy but essential hardware that lets power actually get where it needs to go—into fabs, data centers, and industrial facilities—which is exactly the kind of “picks & shovels” exposure we like to have when governments and corporates are spending heavily on infrastructure.
With this tape getting trickier, we’ve tightened our entry rules, and this name clears those new hurdles. Its RSI is in the mid-50s (comfortably between 40 and 70), and Chartmill gives it a strong technical profile: high overall technical rating, a setup rating of 7, and solid fundamentals across health and growth. In other words, it’s not a falling knife we’re trying to catch—it’s a technically sound, thematically aligned name that hasn’t gone completely vertical yet.
Letting Volatility Work For Us
We’re leaning into the current volatility and using one of our hybrid options structures that gives us defined downside, lets us harvest some of the high near-term implied volatility, and keeps a longer runway if the reindustrialization and AI-adjacent thesis plays out.
Full details on the trade below, including our preset exit orders, so we don’t have to babysit it.
Today’s Market Watchers Trade
Power electronics / reindustrialization theme
