Trade Alert: AI Meets Healthcare
A bullish options bet on an AI-enabled, small cap healthcare name from our Multibaggers list.
Using AI To Lower Healthcare Costs
Most of the AI excitement lately has been about GPUs, data centers, and flashy “AI winners” that trade at nosebleed multiples. But one of the less glamorous parts of this story is where a lot of the money actually has to go: helping very expensive, very sick patients stay out of the hospital.
That’s the space this week’s trade idea lives in.
The company in question isn’t building chatbots or training large language models. It runs a tech-enabled chronic care program focused on conditions like diabetes, pre-diabetes, and obesity—the stuff that quietly eats a massive share of U.S. healthcare spending every year. Instead of chasing consumer eyeballs, it sells to employers and health plans that are desperate to bend their cost curves lower without making their members miserable.
A few things make it interesting here:
It was surfaced by one of our Multibaggers accounts—these are a subset of the investors in our Market Watchers X list who have documented 100%+ winners of the last year.
It already has real revenue at meaningful scale, not just pilots and promises.
Its model combines software, devices, and human coaching – which means that if it works, it can be sticky and hard to rip out.
Management has started to converge around a clearer narrative: which customers they’re targeting, which conditions they’re focused on, and how they think they can grow margins over time.
Down, But Not A Falling Knife
Technically, the stock also now passes our “falling knives” tests. After a big pullback from its October highs, it has a Chartmill setup rating of 7 and an RSI of about 50. It’s back in a zone where we’re comfortable taking a defined-risk swing at a rebound.
Because the options market in this name is still relatively thin, spreads are wide. So instead of trusting the midpoint blindly, we used a Black–Scholes estimate to calculate a fair value for our structure—and it’s one where we are able to enter the trade at a significant discount to that fair value.
Full details below, including preset exit instructions as usual, so we don’t have to babysit the trade.
Today’s Multibaggers Trade
(Digital Health / Chronic Disease Management theme)
