Trade Alert: Quantum Computing + Precision Timing
Bullish bets on our system's #1 name from Friday, and a name from our Market Watchers X list. Plus, a market hedge.
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Macro tailwinds are converging across three hard-tech niches:
Full-stack quantum acceleration is moving from lab demos to real-world workloads as AI demand for exponential compute explodes.
Ultra-precise time-keeping and frequency control just became a national-security priority as the Pentagon fast-tracks next-gen satellites and autonomous ISR platforms.
Today we’re positioning in one best-in-class pure play from each arena. Both offer asymmetric reward-to-risk setups that the market still isn’t pricing correctly.
Here’s a quick sketch of each company.
In addition, I’m going to add a market hedge here, using the PA iPhone app.
Full trade details—including tickers, options structures, and exit strategies—are below for paid subscribers.
🔒 Subscriber Section (names, tickers & trades)
1️⃣ IONQ — “Quantum Meets AI”
Why: It was our #1 name from last Friday. Also, IonQ ( IONQ 0.00%↑) leads in trapped-ion quantum computing, with systems like Aria scaling toward higher qubit counts. Partnerships with AWS and Microsoft enable cloud-based access, with early traction in AI and optimization use cases.
Catalysts: Potential contract announcements, Q3 2025 earnings.
Risks: Quantum computing remains early-stage; adoption may lag expectations.
Our trade: A vertical spread expiring on January 16th, buying the $42 strike call and selling the $60 strike call, for a net debit of $4.85. The max gain on 1 contract is $1,315, the max loss is $485, and the break even is with IONQ at $46.85. This trade filled at $4.80.
2️⃣ FEIM — “Timing the Drone Surge”
Why: Frequency Electronics (FEIM 0.00%↑) supplies rubidium-based atomic clocks and oscillators for defense applications, including satellites and autonomous ISR systems. Recent contract wins and a new rubidium oscillator line could drive revenue growth through FY-27.
Catalysts: Defense contract updates, Q3 2025 earnings.
Risks: Low liquidity and dependence on defense budgets.
Our Trade: Buying the shares at or below $20.60. This trade filled at $20.60.
3️⃣QQQ Puts — Our Hedge
Why: Volatility is low now, and we have a number of bullish options trades expiring in mid-August.
Our trade: Buying the $505 strike puts on the Invesco QQQ Trust (QQQ 0.00%↑) expiring on August 22nd, for $2.27. The max loss on 1 contract is $227, and the break even is with QQQ at $502.73. This trade filled at $2.27.
Exiting These Trades
IONQ: I’m going to open a GTC order to exit this spread at $17.50, and lower that price, if necessary, as we approach expiration.
FEIM: I’m going to reevaluate the stock when we exit the IONQ spread or when that spread expires. If I decide to sell it then, I’ll send out a chat about it as soon as I do, and I’ll also indicate that in the comments on this post.
QQQ Puts: Will sell this if we have a market crash before it expires. Otherwise, I’ll try to sell it the week it expires, for whatever I can get for it.
I could not bear the gift horse’s mouth for another open so I sold my MP calls for $12.46. Thank you! I’d like to see more of these, and fewer verticals. That said, I understand cheap calls worth trading are few and far between - hence the need for spreads
What's the latest on the FEIM position? I see it's still up even in this down market. Is there a target exit price?