Trade Alert: Back On Offense
Bullish options trades on three of our top names tied to AI, robotics, and reindustrialization.
Back On Offense
None of our Top Names from Friday passed our tighter entry requirements, and that was true of names on our watchlist from our other sources of alpha as well. Hence, no trade alert Monday. Monday night’s Top Names gave us three attractive targets though.
Today’s three trades have a few things in common. Each gives us exposure to two earnings reports on the long side, each is tied to one of our core themes, and each has pulled back somewhat from its highs as war-related uncertainty has weighed on the market. Rather than chase them blindly, we’re only taking these setups if we can get them at prices that offer solid upside while keeping our downside strictly defined.
That matters in this tape. We’re still looking several months out on these bullish trades, and by then we expect the current war to have been resolved. In the meantime, though, the uncertainty around it has helped create better entries in a number of names that still look fundamentally and technically sound.
Embodied AI And Robotics
The first company is tied to automation and robotics testing, part of the embodied-AI buildout. As more capital flows into robotics and automation, the companies supplying the tools and systems behind that trend should benefit as well. This stock is one we traded profitably last year.
Electrical Infrastructure For Reindustrialization
The second company gives us exposure to electrical infrastructure for large industrial and power projects. That fits neatly with our reindustrialization theme and with the broader need for power equipment and grid-related hardware in an AI- and electrification-heavy world. This is another stock we traded profitably last year (more than once, in fact).
Heavy Equipment And Power Demand
The third company is a more familiar industrial name, but one that still fits the current environment: a business tied to large-scale equipment demand, energy, and the infrastructure needed to support industrial growth. Like the other two names, it has also come off its highs enough to give us a more attractive shot at entry.
Full details below.
Today’s First Top Names Trade
Embodied AI / robotics theme
