Trade Alert: Robotics, AI, and Defense
Taking advantage of a pullback in two of our Market Watchers names using options structures with uncapped upside. Plus, an explanation of our seemingly high trade frequency.
Why We’re Able To Trade So Often
If you’re new here, you might be wondering how we’re able to enter so many options trades. Some days it can look like a blur. The key is that not every trade idea actually gets filled—we’re selective on entries, we try not to chase, and we make a point not to overpay.
Most of our orders start below the fair value of the trade structure, and if the market doesn’t come to us, we’re fine letting them sit and expire unfilled. One of today’s two trades is a good example: it’s the third time in the last couple of weeks we’ve tried to enter a position in this name. The stock has drifted back into our technical target zone, so we’re taking another swing—but only at a price that makes sense to us.
We’re also able to keep putting on new trades because we’re taking them off just as regularly. Every trade idea comes with pre-set exit orders. This week alone we’ve already had 11 partial or full exits, which we’ll recap in detail in our weekly Exits post later today. The point isn’t to stack up positions endlessly; it’s to rotate capital from trades that have hit their marks into new ones where our process gives us good shot at future profitable exits.
Back To Robotics…
One of today’s trades goes back to a speculative robotics and AI name we first highlighted after it announced a high-profile partnership. The stock ripped higher on that news, and we weren’t willing to chase it. Then it sold off sharply after a private placement was announced—despite that placement being done at a higher price and bringing in a substantial amount of fresh capital. Now the stock has given back more than 20%, its technical setup has reset to something we’re comfortable with, and we’re using a risk-reversal structure to get uncapped upside while treating downside more in line with a realistic stress scenario than with the theoretical “goes-to-zero tomorrow” max loss.
…And The Intersection Of AI And Defense
Our other trade today is in a tiny hardware company that sits in the plumbing of the AI build-out—designing and building rugged, high-performance systems for things like defense applications and autonomous platforms. It’s a classic “picks and shovels” play in embodied AI: not a flashy consumer name, but a specialized supplier that benefits as more compute gets pushed out to the edge. The stock has been strong recently, but its technicals are back in our preferred range, so we’re using a structure with uncapped upside to swing for the fences with it.
Full details on both trades, including our pre-set exit triggers, below.
Today’s First Market Watchers Trade
Embodied AI / speculative robotics rerating theme
