Trade Alert: Physical AI, Power, Semiconductors, And Biotech
Adding to what's working.
Adding To What’s Working
Today’s alert has a slightly different shape from some of our recent ones.
Two of today’s trades are add-ons to names where we already have or recently had profitable exposure. That’s deliberate. When a name keeps showing up in our system, remains in a strong theme, and gives us a structure with defined risk, there’s no reason we have to ignore it simply because we’ve traded it before.
One of those names is tied to power-efficient semiconductors for AI. We already have an open trade there, with the put spread closed and half the calls sold for a strong gain. The second is tied to power, emissions control, and AI power-capacity. We already have open exposure there too, but the theme remains strong and the new structure gives us another defined-risk shot.
Lidar, Perception, And Physical AI
We also have a Market Watchers name tied to lidar and the perception stack.
We already have an open trade on Ouster (OUST 0.00%↑), which is tied to lidar for autonomy, robotics, industrial automation, and physical AI.
Ouster’s technical breakthrough is its new REV8 OS lidar family, which adds native color to laser-based 3D sensing — a “fused by physics” approach that could reduce the software sensor-fusion problem between cameras and lidar. Today’s Market Watchers trade gives us exposure to another name positioned to benefit if investors keep paying attention to that same trend.
A Clinical Data Shot
We also have a speculative oncology biotech trade.
This one is not about near-term earnings. It’s about a clinical-data timeline later this year. The available options don’t go as far out as we’d ideally like, so we’re using the furthest available expiration and keeping the risk defined. If the trade works before longer-dated options become available, we can always consider rolling profits into a longer-term structure later.
A Tight Value-And-Momentum Screen
Finally, one of today’s trades comes from our “Really Time To Buy” Chartmill screen. That screen is tight: Price/Earning/Growth (PEG) ratio of 1 or lower, options available, technical rating of at least 6, setup rating of at least 7, Piotroski F-score of at least 8, and U.S.-listed. Only six stocks passed all of those criteria on Monday.
As usual, we’re pricing these trades using Black-Scholes and the current implied volatility of each leg. Some of these chains are wide or stale, so we’re not going to chase. If we don’t get the prices we want, the trades don’t fill.
Today’s First Top Names Trade
Power-efficient semiconductors / AI power theme
