Trade Alert: Skating To Where The Puck Is Going
(It's going to the moon)
Skating To Where The Puck Is Going
As the NHL regular season comes to a close, the old line about what supposedly set Wayne Gretzky apart from other players comes to mind: he didn’t skate to the puck, but to wear the puck was going. Was that a trite oversimplification of his game? Probably, but it has some relevance to today’s market action.
The Iran conflict still dominates headlines, but certain corners of the market are already looking past it. We’re already seeing movement in space stocks, for example, ahead of what is likely to be the biggest IPO ever, for SpaceX. Intuitive Machines (LUNR 0.00%↑), which we entered a trade in earlier this year, is up about a third over the past month. Space investors and traders are looking past the Strait of Hormuz, setting their sights on the stars. So are we: one of today’s trades is in another space name from our Market Watchers X list.
Today’s other trade is in one of our Top Names from last night, an oil field services company whose services should be in demand after the Iran war wraps up.
Maintaining Our Discipline
As always, we’re not just buying stories. We’re pricing the options structures first, estimating fair value, and then trying to enter at discounts to that fair value. We don’t want to miss the next rocket taking off, but we don’t want to overpay for the ride either.
Today’s Top Names Trade
Oilfield services / postwar production normalization theme
