Trade Alert: AI Capex And Two Biotech Catalysts
Bullish options bets on an AI infrastructure leader, and a biotech with a courtroom catalyst; plus, a bearish options bet on another biotech with a pivotal trial.
AI Demand Is Turning Into Orders
Alphabet just gave the AI-infrastructure bears a difficult set of numbers. Second-quarter revenue rose 24%, Google Cloud revenue jumped 82% to $24.8 billion, and the company spent $44.9 billion on property and equipment—about twice as much as it did a year earlier.
Nokia supplied the next layer of evidence Thursday morning. Its AI & Cloud sales rose 105%, order intake reached €2.8 billion, and management expects about half of those orders to convert to revenue over the next 12 months. Its chief constraint remains supply. Texas Instruments added a broader confirmation: revenue rose 23%, with growth led by industrial, data center and automotive demand.
That evidence leads into our first trade, on one of our system’s current Top Names, which is a profitable supplier to the semiconductor companies behind the buildout. Its shares have corrected with the rest of the AI stack, but its long-term trend remains intact, and our trade is structured to let the options market pay us to take bullish exposure.
Two Biotech Catalysts, Opposite Directions
The other two trades came from the same Multibaggers source, but they point in opposite directions (recall that our Multibaggers are a subset of accounts from our Market Watchers X list with recent, documented 100%+ winners). One is a bullish trade ahead of a September courtroom catalyst where a favorable settlement or verdict could force a rerating. The other is a bearish trade ahead of a Phase 3 leukemia readout where the trial design may leave little statistical cushion if the control arm outlives the original assumption.
These are three different expressions of the same discipline: pair a concrete catalyst with a defined-risk structure and demand an attractive price. One trade benefits from sustained AI investment, one from a favorable legal outcome, and one from a clinical failure.
Today’s Top Names Trade
Semiconductor equipment / AI-capacity theme
RSI: 48 | Chartmill Technical Rating: 9 | Setup Rating: 5 | Fundamental Rating: 7
