Trade Alert: Energy And Drones

A follow-up bullish options trade on a drone tech name with new insider buying, plus a new trade on an energy name with excellent fundamentals and strong technicals.

Trading Carefully

The market—particularly the broader AI complex—has looked wobbly over the last week or so, though Micron’s (MU 0.00%↑) gangbuster earnings yesterday and today’s CPI will improve sentiment going forward (we opened a bullish earnings trade on Micron earlier this week, after it appeared in our top names). Nevertheless, I’m trying to be extra selective here, using the rules I laid out earlier this month to avoid catching falling knives.

In fact, today I’ve been a bit stricter than I wrote there, applying those rules to new Portfolio Armor top names as well as to ones where we currently have open trades. In last night’s top ten names, for example, there were a couple of stocks I liked, but I have held off on entering trades in them due to their recent price action. Today’s trades meet our strict rules: each stock has a Chartmill set-up rating of 5 or better, and an RSI of 40 or more. The first trade is on an energy stock.

Buying Oil Exposure While It’s Cheap

With silver hitting new highs recently, following gold, and platinum starting to break out too, oil has been languishing with Brent and WTI prices in the $50s. That said, one would think refined products like diesel would stand to benefit from surging power needs in 2026—driven by AI data center expansion and broader U.S. reindustrialization, both of which rely heavily on reliable, high-density energy sources including backup generation and direct fuel use.

Our energy trade today targets a small-cap oil producer with excellent metrics: Chartmill set-up rating 6, profitability 7, financial health 7, growth 6, valuation 8, Piotroski F-Score 9, and technical rating 8—a cheap, defined-risk entry into the theme.

Doubling Down On Drones

A couple of months ago, we opened up a trade on a company that produces fully-autonomous drone systems and AI-powered vision platforms supporting mission-critical infrastructure and defense. Yesterday, that company’s CEO filed a disclosure that he bought over a million shares at a price about 10% higher than yesterday’s close. I like the idea of doubling down when the CEO has that kind of conviction and the share price looks like it may be bottoming out here.

Both trades have defined downside and uncapped upside.

Full Details Below.

Today’s Chartmill Trade

(AI Power/Diesel Demand & Value)