Trade Alert: Rare Earths And AI Data Storage
Asymmetric upside bets on Portfolio Armor top names in both of those themes; plus, a special situation.
Rare Earths, AI Storage, and a Special Situation
We’re adding three new trades today across two categories: two from our Top Names list, and one special situation flagged by our Market Watchers list. All three share a common thread: asymmetric upside with strictly defined downside.
Two of today’s names come from the Top Names list and fit two of our core current themes. Both stocks are down sharply from their highs this year—one by more than 60%, the other by more than 30%—but both pass our “falling knives” filters. Each has a Chartmill setup rating of 5 or higher and an RSI above 40, suggesting they’re not in capitulation mode and may be stabilizing at these levels. For names showing early signs of basing after significant drawdowns, these hybrid and combo structures let us participate in a potential rebound while capping our risk tightly.
Our third trade is a special situation that has been developing over the last couple of weeks. A major global shipping company recently received an initial buyout offer that appears to undervalue the business relative to its assets. The stock isn’t far from its year-to-date highs—it peaked only a few dollars above where it trades now—but the thesis flagged by Market Watchers is still very much in play. We exited one trade in this name last week for a profit and are rolling into a new, defined-risk structure to stay positioned if the situation escalates.
Full trade details below.
Today’s First Top Names Trade
Reindustrialization / Strategic Materials theme
USA Rare Earth (USAR 0.00%↑)
Buying the $18 strike call expiring on June 18th, 2026,
Selling the $12 strike put expiring on June 18th, 2026, and
Buying the $10 strike put expiring on June 18th, 2026,
For a max net debit of $2.45. The max gain on 2 contracts is unlimited, the max loss is $890, and the break-even is with USAR at $20.45.
This trade filled at $2.45.
Today’s Second Top Names Trade
AI Hardware / Memory & Storage Infrastructure theme
SanDisk (SNDK 0.00%↑)
Buying the $250 strike call expiring on March 20th, 2026,
Selling the $270 strike call expiring on March 20th, 2026,
Selling the $180 strike put expiring on March 20th, 2026, and
Buying the $175 strike put expiring on March 20th, 2026,
For a max net debit of $2.45. The max gain on 1 contract is $1,755, the max loss is $745, and the break-even is with SNDK at $252.45. This trade filled at $1.78.
Today’s Special Situation Trade
Special Situation / Event-Driven theme
ZIM Integrated Shipping (ZIM 0.00%↑)
Buying the $20 strike call expiring on April 17th, 2026,
Selling the $18 strike put expiring on April 17th, 2026, and
Buying the $13 strike put expiring on April 17th, 2026,
For a max net debit of $1.65. The max gain on 1 2 contracts is unlimited, the max loss is $665, and the break-even is with ZIM at $21.65. This trade hasn’t filled yet. I’m going to keep it open until 12/11/2025 if it doesn’t fill today. This trade filled at $1.65 $1.60 on 12/5/2025.
Exiting These Trades
My plan:
USAR
Calls: Open a GTC limit order to sell half of the calls at $10. ~30 days prior to expiration, I’ll post an updated price target for the remaining call(s) in the comments here and via chat/email.
Put spread: Open a GTC limit order to exit at a net debit of $0.20, and raise that price, if necessary, as we approach expiration.
SNDK
Call spread: Open a GTC limit order to exit at a net credit of $16, and lower that, if necessary, as we approach expiration.
Put spread: Open a GTC limit order to exit at a net debit of $0.20, and raise that price, if necessary, as we approach expiration.
ZIM (assuming it fills)
Calls: After the company’s board meeting later this month, I’ll post a price target for a GTC exit order in the comments here and via chat/email.
Put spread: Open a GTC limit order to exit at a net debit of $0.20, and raise that price, if necessary, as we approach expiration.
Out of the ZIM put spread today at $0.20.
When should we expect a price target for the ZIM calls?