Trade Alert: Power, Aluminum, And The AI Stack
After more than a dozen profitable trade exits last week, bullish options bets on three of our Top Names from Friday, and on one Market Watchers name.
Power, Aluminum, And The Physical AI Stack
After last week’s profitable exits,
Friday night’s Top Names list had a very clear message: the physical side of the AI buildout is still where our system is finding a lot of opportunity.
At the top of the list was a power and electrification name. That makes sense. AI doesn’t just need chips and software; it needs electricity, grid equipment, turbines, transformers, and the whole physical infrastructure needed to power the data centers everyone is building.
Two Aluminum Trades
We’re also looking at two aluminum names today. That’s deliberate rather than accidental.
One is the cleaner, larger-cap version of the aluminum / reindustrialization theme; the other is the higher-beta version. If aluminum continues to benefit from power constraints, reshoring, tariffs, and the broader rebuild of Western industrial capacity, both can work, but they don’t offer exactly the same exposure. The larger-cap name gives us the steadier version of the trade, while the smaller, higher-beta name gives us more torque if the theme accelerates.
Semiconductor-Adjacent Infrastructure
Finally, we have a Market Watchers / Chartmill name tied to photomasks and semiconductor manufacturing inputs.
I wouldn’t describe this one as a direct AI hardware name, but it does fit the semiconductor-adjacent infrastructure stack. The AI buildout has been pulling capital toward the whole physical chain: chips, optical networking, power, cooling, test equipment, and the manufacturing inputs that sit behind semiconductor production.
As usual, we’re pricing these trades using Black-Scholes and the current implied volatility of each leg. Some of these option chains are wider than others, so we’ll put in our bids below fair value and walk away if we don’t get the prices we want.
Full details below.
Today’s First Top Names Trade
Power / electrification / AI power-capacity theme
