Trade Alert: Energy, Biotech, and Psychedelics
A bullish trade on one of our Top Names, plus two trades on names from our Multibaggers list.
Schrödinger’s Strait
Over the weekend, the Strait of Hormuz turned into something like Schrödinger’s Strait: open and closed at the same time, depending on which headline you were looking at. On Friday, markets cheered signs that Iran was reopening it to commercial shipping during the ceasefire. By the weekend, that looked less certain, as the U.S. blockade remained in place and the confrontation around Iranian shipping took a more hawkish turn. That helps explain why oil futures jumped as Sunday trading opened, even after Friday’s “war winding down” narrative had pushed energy prices sharply lower.
That leaves us in a market that is still trying to decide whether to price a clean end to the conflict, a messy negotiated settlement, or another round of escalation. One of today’s trades reflects that ambiguity directly: another non-Middle Eastern energy producer, the kind of name that can still work even if the war eventually winds down and oil settles lower than it is now.
A New Psychedelic Tailwind
The other big weekend development was President Trump’s executive order aimed at accelerating access to psychedelic-based treatments for serious mental illness. The order does not simply “legalize” these drugs, but it does direct the FDA to expedite review of compounds such as ibogaine, and the White House framed it as removing barriers to psychedelic drugs as potential treatments for serious mental illness. Reuters also noted that the move was backed by military-veterans groups and by Joe Rogan, who has highlighted ibogaine’s potential on behalf of veterans.
That broader policy shift helps one of today’s trades in a psychedelic name from our Multibaggers list.
Another Shot On A Familiar Biotech
Our third trade is a second stab at a biotech name we tried to enter on Friday but didn’t get filled on. We’re trying again because the setup still looks compelling: it remains a Multibaggers favorite, it still passes our tighter RSI and Setup filters, and the catalyst path is still attractive. The company is expected to report financial results in, and its more important Phase 3 maintenance readout is still expected in late Q2, which means late June. We’ve structured the trade to harvest premium through the May event while keeping upside exposure alive through the more important June catalyst.
Maintaining Our Discipline
As always, on the options side, we’re not just buying stories. We’re pricing the structures first, estimating fair value, and then trying to enter at discounts to that fair value. We want bullish exposure here, but we still want to be disciplined about what we pay.
Today’s Top Names Trade
Energy / infrastructure theme
