Trade Alert: Satellite Mind II

A bullish bet on one our top ten names last night, a satellite company.

Why We Care About Our Top Ten Names

For the benefit of new readers: we have 6-month return data for 113 weekly top ten names cohorts, and, on average, they’ve outperformed the market-tracking SPDR S&P 500 Trust (SPY 0.00%↑), +16.10% versus +9.09%, over the next 6 months. Returns can be lumpy, but there’s real alpha here.

Satellite Mind Again

That’s also the title of a Metric, song, which is why it came to mind again, given that today’s top names trade is on a satellite company.

We took a loss on our most recent satellite trade, but that company, BlackSky Technology (BKSY 0.00%↑), was nearly a pure-play defense name, and as I mentioned in my exit commentary, Trump’s peacemaking spree this summer seems to have hurt defense names.

A Nice Trade Set-Up Too

The math on today’s more commercial satellite stock trade looks good:

• Cost per contract: < $600

• Max gain: ~200%

• Break even: within ~5% of spot

Heads we win ~2x, tails we lose x—and we don’t need a big move to just put us in the black over the next few months.

Details below.

Today’s Top Names Trade