Trade Alert: Falling Knives

We're going to try to catch a few—carefully—today. Two Portfolio Armor top names, and one each from our Market Watchers and Multibaggers X lists.

Catching Falling Knives—Carefully

With markets pulling back sharply this week, we’re getting the kind of entries and option setups we almost never see in rising markets. Volatility has come in where we want it, skew has normalized in places where it was distorted, and several names on our radar have pulled back toward support. That’s exactly when we want to lean in. Most of today’s trades use structures with uncapped upside, letting us harvest near-term IV while keeping the long-dated optionality we want.

Two of today’s trades come from our Portfolio Armor Top Names list. One is a newly added name with an asymmetric upside profile in next-generation battery technology — a sector where small technical improvements can lead to large re-pricings. The other is a nuclear energy stock we exited profitably last month. With that name reappearing in our Top Ten, we’re applying our standard “re-entering winners” rule and taking another swing at it on this dip.

We’re also putting on a macro election trade ahead of this weekend’s vote in Chile. That idea comes from our Multibaggers list, the group of high-performing X accounts we track for unusual asymmetric setups. We tried to enter this one earlier in the week but didn’t get a fill. Given the way prices have moved since then, we may get a cleaner opportunity today.

Our final trade comes from our broader Market Watchers X list, this time involving an industrial metals producer that’s also a meaningful — but under-the-radar — silver miner. With higher silver prices expected to hit its results early next year, we’re taking a small speculative position using a structure with uncapped upside.

All four trades reflect the same philosophy: use periods of market stress to enter defined-risk, asymmetric structures when the pricing is in our favor.

Full details below.

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Today’s First Top Names Trade

Nuclear / energy security theme