Trade Alert: From Fool's Gold To The Real Thing
Bullish options bets on gold, copper, space, and Open RAN telecom infrastructure.
From Fool’s Gold To The Real Thing
Pivoting from speculative miners to a quality producer—and adding copper, space, and high-risk multibagger names.
In Friday’s Top Names list, two gold miners showed up that looked attractive at first glance, but less so when I drilled into the fundamentals: weak balance sheets, marginal profitability, and business models that leaned more toward lottery tickets on higher gold prices than solid operators. In a tape like this, that’s not the kind of risk I want to add, so I passed on both.
Last night’s Top Names run—the one you’re reading about today—turned up a very different kind of gold name. This one has excellent fundamentals: Chartmill gives it an overall fundamental rating of 8, a profitability rating of 8, a health rating of 7, a growth rating of 9, a valuation rating of 6, and a Piotroski F-Score of 9. That’s the profile of a real business that’s growing, making money, and not skating on thin ice financially. When you combine that kind of quality with a pullback in the metal and a high spot in Portfolio Armor’s rankings, it’s exactly the sort of precious-metals exposure I’m happy to add.
Back In Copper
I’m also adding back exposure to copper via a hybrid four-leg combo on a large, liquid producer that sits in the middle of the reindustrialization and AI datacenter build-out story. Copper has already had a huge run, but with multi-year supply constraints and rising demand from grid and industrial upgrades, I still want a defined-risk way to participate in that trend, after we exited our last copper trade for a big gain last week.
A Previous Winner Returns To Our Top Names
The other Top Names trade I’m opening today isn’t new to us at all—it’s a stock we’ve traded successfully before. Back in December, we exited a previous position in this small-launch and space-infrastructure name from the Top Names list for a 293% gain. It’s back in the Top Ten now, after pulling back sharply on heavy volume, and the options market is offering us a chance to structure a defined-risk trade in it at a steep discount to Black–Scholes fair value.
And A Multibaggers Name
Finally, I’m adding a higher-risk name from our Multibaggers list in the 5G Open RAN hardware space. It’s a tiny company with real products, blue-chip customers, and large letters of intent that could drive meaningful revenue growth if they execute—and the market still prices it as if none of that will pan out. We bought shares of this one last summer, before it had options available; now that it has options, I’ve structured a trade that pays us a net credit while giving us a shot at uncapped upside.
Details on all four trades below, including preset exit orders, as usual, so we won’t have to babysit the trades.
Today’s First Top Names Trade
Precious-metals / affordable growth theme
