Trade Alert: Power, Biotech, And AI Bottlenecks
Bullish options trades on four of our Market Watchers names.
Power, Biotech, And AI Bottlenecks
Today’s alert has four Market Watchers trades.
The themes are power generation, commercial-stage biotech, clinical-stage biotech, and semiconductor test equipment tied to silicon photonics and AI infrastructure.
The Power Buildout
The first trade is in a power name tied to one of the strongest themes in the market now: AI-driven electricity demand.
Power has become one of the biggest bottlenecks in the AI buildout. Data centers need more electricity, faster interconnection, backup capacity, and on-site generation. That has turned parts of the power ecosystem into one of the market’s best-performing corners.
This name is a little extended on RSI, but still inside our broader screen range, with a strong Chartmill setup score and bullish directional pressure.
Two Biotech Trades
The second and third trades are biotech names.
One is a commercial-stage biotech with a newly launched rare-disease treatment. The Market Watchers thesis is that the launch is already proving demand, and that a permanent J-code should help billing and reimbursement, potentially improving cash conversion over the rest of the year.
The other is a clinical-stage biotech with a clean technical setup. It passed our screens with one of the stronger setup scores in tonight’s batch.
A Repeat Name With More Upside
The fourth trade is a repeat name.
We already have an open trade on it that’s deep in the black, but the upside on that trade is capped too low now. The stock has moved far beyond the short strike on our existing call spread, so this new structure is designed to capture more potential upside while still keeping the risk defined.
That name sits in the silicon photonics / AI infrastructure test bottleneck theme, which remains one of the more compelling second-order AI trades.
A Chance To Lock In Current Prices
A brief reminder: subscription prices for the Portfolio Armor Substack are going up from $40 per month or $400 per year to $50 per month or $500 per year later today, but current subscribers will be grandfathered into the price they’re currently paying. So consider joining now, if you’re a free subscriber. If you join and change your mind, I’ll be happy to give you a prorated refund at any time.
Today’s First Market Watchers Trade
Power generation / AI electricity demand theme
