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.

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Today’s Market Watchers Trade

Power electronics / reindustrialization theme

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

1. Buying two of the September 18th, 2026 $12.50 calls,

2. Selling two of the June 18th, 2026 $17.50 calls,

3. Selling two of the June 18th, 2026 $12.50 puts, and

4. Buying two of the June 18th, 2026 $10 puts,

For a max net debit of $0.90. The max gain on one combo (2 contracts per leg) is $951, and the max loss is $680.

This trade filled at $0.75.

Exiting This Trade

My plan:

RELL

• Calls / calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the short June 18th, 2026 $17.50 calls at $0.20, and raise that price if necessary as we approach the June expiration. If the short calls expire in the money, I’ll sell the long September 18th, 2026 $12.50 calls and use part of the proceeds to buy-to-close the short calls. If the short calls expire out of the money, I’ll post a price target for a GTC exit order on the long September $12.50 calls in the comments here and via chat/email.

• Put spread (legs 3 & 4): Open a GTC limit order to exit the June 18th, 2026 $10–$12.50 put spread at a net debit of $0.20, and raise that price if necessary as we approach the June expiration.