Trade Alert: AI Hardware, Physical AI, And High-Torque Infrastructure
Bullish options trades on four names from our Market Watchers -:> Chartmill workflow.
Staying Selective
Monday’s alert gave us a clean mix of analog semiconductors, optical networking, optical interconnect, and machine vision.
Today’s alert stays in that general neighborhood, but we’re being selective. Some candidates have already run hard. Others are names where we already have open trades, and where we’d rather wait for a better technical setup before adding more.
So we’re focusing on names where the theme, the technical setup, and the options structure all line up.
Four Trades For Today
All four of today’s trades came from our Market Watchers X List → Chartmill workflow, where we bookmark names from savvy investors we follow, where we agree with the thesis, and then set alerts to let us know when those names pass our technical screens and fall within our Goldilocks zone: not overextended and not breaking down.
The first gives us exposure to the AI hardware supply chain. The second gives us a physical-AI / semiconductor-IP angle. The third goes back to a name where we have an open trade from earlier this year that is currently well in-the-money. Sometimes the best new trade is on a previous winner. All else equal, if the stock is up since we last traded it, that’s great—provided it’s not overextended technically. That’s why we use RSI and Setup screens: to help us avoid chasing names that have run out of steam.
The fourth is a higher-torque infrastructure name sitting at the intersection of power, data centers, and AI/compute demand.
Some of these names are smaller companies, and some of our biggest winners in the AI buildout have come from smaller names.
As usual, we priced each structure using Black-Scholes. Then we set our entry prices so we either get in at or below fair value, or we don’t take the trade.
We’re letting the market come to us.
Today’s First Market Watchers Trade
AI hardware supply-chain / printed circuit board theme
