Physical AI Gets Another Boost
Nvidia’s (NVDA 0.00%↑) earnings report and call strengthened the case we’ve been making about the AI buildout.
Revenue hit a record $81.6 billion, up 85% year-over-year. Data Center revenue hit a record $75.2 billion, up 92%. More important for today’s alert, CEO Jensen Huang described the buildout of AI factories as “the largest infrastructure expansion in human history,” and Nvidia’s new reporting framework now includes Edge Computing as a separate platform, explicitly covering physical AI applications including robotics and automotive
That also reinforces the point we made in “Partying Like It’s Not 1999”.
Cisco Systems (CSCO 0.00%↑) was roughly the Nvidia of the dot-com boom: the critical networking supplier behind the internet buildout. At its peak in March 2000, using Peter Lynch’s favorite valuation metric, the PEG ratio (Price/Earnings divided by Growth rate), Cisco was trading at a PEG ratio of >4. Prior to this week’s report, Chartmill had a next-year PEG ratio of 0.64 for Nvidia. That will probably be a bit lower once this report is taken into account.
Nvidia is producing staggering current revenue and earnings while the AI buildout is still accelerating.
Back To Ouster
Earlier this month, in our “Physical AI, Power, Semiconductors, And Biotech” alert,
We mentioned Ouster (OUST 0.00%↑) as part of that trend. We noted that we already had an open trade on it, and that its lidar and perception stack tied directly into autonomy, robotics, industrial automation, and physical AI, particularly with its latest, REV8 version.
Since then, Nvidia’s report has reinforced the same broad thesis, and Ouster’s own news has made the tie-in more concrete: the company recently announced support for its REV8 digital lidar across the Nvidia Jetson platform, describing it as a way to bring native color lidar sensing to Nvidia’s robotics ecosystem and power the next wave of Physical AI.
The stock has also passed our technical screens now, with a reasonable RSI, a constructive Chartmill Setup rating, and bullish directional pressure. So we’re adding another trade on it here.
Letting Volatility Work For Us
The other two trades today are different: one is a semiconductor equipment name, and the other is a speculative biotech platform name. Both came through our Market Watchers X List → Chartmill workflow, where we get alerts when names we’ve highlighted from our Market Watchers in the past hit our technical buy zones, and both have enough option premium for us to structure defined-risk bullish trades.
As usual, that structure matters.
We saw another example of that yesterday with T1 Energy (TE 0.00%↑), a name we highlighted in this week’s “Momentum Pullback, Thesis Intact” alert. We entered that trade last week, and after the stock jumped yesterday, we were able to take a ~200% profit on half of our calls.
Calls on T1 Energy (TE 0.00%↑). Bought the December 18th, 2026 $8 calls for $1.33 as part of a 3-leg combo on 5/13/2026; sold half for $4.00 on 5/20/2026. Profit: 201%. Signal: Market Watchers.
That’s the goal here too: find names tied to durable themes, wait for them to pass our screens, and use option structures that give us a chance to profit from volatility in the near term.
Today’s First Market Watchers Trade
Lidar / robotics / physical AI theme
The stock is Ouster (OUST 0.00%↑), and our trade is a hybrid combo consisting of these four legs:
Buying the November 20th, 2026 $40 call,
Selling the August 21st, 2026 $45 call,
Selling the November 20th, 2026 $25 put,
Buying the November 20th, 2026 $20 put,
For a max net debit of $1.85. The max gain on 1 contract is $927 (if the short August $45 call expires in-the-money; if it expires out-of-the-money, or we buy-to-close it before then, our upside will be uncapped), and the max loss is $685.
This trade filled at $1.45.
Today’s Second Market Watchers Trade
Semiconductor equipment / AI infrastructure theme
The stock is Amtech Systems (ASYS 0.00%↑), and our trade is a hybrid combo consisting of these four legs:
Buying two of the November 20th, 2026 $25 calls,
Selling two of the August 21st, 2026 $30 calls,
Selling two of the November 20th, 2026 $17.50 puts,
Buying two of the November 20th, 2026 $15 puts,
For a max net debit of $0.40. The max gain on one combo (2 contracts per leg) is $1,443 (if the short August $30 calls expire in-the-money; if they expire out-of-the-money, or we buy-to-close them before then, our upside will be uncapped), and the max loss is $580.
This trade hasn’t filled yet. This trade didn’t fill.
Today’s Multibaggers Trade
Biotech platform / antibody-discovery theme
The stock is AbCellera Biologics (ABCL 0.00%↑), and our trade is a combo consisting of these three legs:
Buying four of the January 15th, 2027 $6 calls,
Selling two of the January 15th, 2027 $5 puts,
Buying two of the January 15th, 2027 $4 puts,
For a max net debit of $1.90. The max gain on one combo (4 long calls, 2 short puts, and 2 long puts) is uncapped, and the max loss is $580.
This trade hasn’t filled yet. This trade filled at $1.90 later in the day on 5/21/2026.
Unless otherwise indicated, all trades are day orders and will be canceled at the end of the day if they don’t fill.
Exiting These Trades
My plan:
Ouster (OUST)
Calls / calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the short August $45 call at $0.20, and raise that price if necessary as we approach expiration. If that order fills, or if the short call expires out-of-the-money, I’ll share a GTC limit sell price target for the long call in the comments here and via chat/email. If the short call is in-the-money within a few days of expiration, I’ll cancel the buy-to-close order and place an exit order on the calendar slightly above the midpoint, lowering that price as necessary as we approach expiration.
Put spread (legs 3 & 4): Open a GTC limit order to exit the put spread at a net debit of $0.20, and raise that price if necessary as we approach expiration.
Amtech Systems (ASYS) (assuming it fills)
Calls / calendar (legs 1 & 2): Open a GTC limit order to buy-to-close the short August $30 calls at $0.20, and raise that price if necessary as we approach expiration. If that order fills, or if the short calls expire out-of-the-money, I’ll share a GTC limit sell price target for the long calls in the comments here and via chat/email. If the short calls are in-the-money within a few days of expiration, I’ll cancel the buy-to-close order and place an exit order on the calendar slightly above the midpoint, lowering that price as necessary as we approach expiration.
Put spread (legs 3 & 4): Open a GTC limit order to exit the put spread at a net debit of $0.20, and raise that price if necessary as we approach expiration.
AbCellera Biologics (ABCL)
Calls (leg 1): Open a GTC limit order to sell half the calls at $3.75; if that fills, I’ll post a limit sell target for the remaining calls in the comments here and via chat/email; if it doesn’t fill, I’ll lower the price on all the calls as needed as we approach expiration.
Put spread (legs 2 & 3): Open a GTC limit order to exit the put spread at a net debit of $0.12, and raise that price if necessary as we approach expiration.
I placed a GTC order to exit the November 20, 2026 $40/August 21, 2026 $45 OUST call diagonal for a minimum net credit of $10.20.
Exited both ABCL January 15th, 2027 $5/$4 put spreads at a $0.12 net debit.