Trade Alert: Space, Optical Networking, And Retail
Bullish options trades on one of our Top Names from last night, one of our Market Watchers names, and one from our strictest Chartmill screen.
Three Different Sources Of Alpha
Today’s trades come from three different idea streams: Portfolio Armor’s Top Names, our Market Watchers X list, and my strictest Chartmill screen, “Really Time To Buy?”
The Top Names trade gives us exposure to the space / launch theme, which will likely get a tailwind from the pending SpaceX IPO. The Market Watchers trade gives us another shot at the AI optics / data-center interconnect theme. We tried to place a trade on this optical-networking name last month and didn’t get a fill, but yesterday’s AI stack shakeout has given us another opening.
The third trade comes from our “Really Time To Buy?”, a very tight Chartmill screen I created. The criteria are:
PEG (Price/Earnings/Growth rate) using next year’s estimates <=1
PEG using trailing 5-year data <=1
Technical rating >=6
Setup Rating >=7
Piotroski F-Score >=8
Has options
Only nine names made the cut on Thursday. Most were financial or real-estate names; today’s Chartmill trade is the exception, a quality retail name with strong fundamentals and a clean setup. As usual, I’ve included pre-set exit instructions, so we can place our exit orders as soon as these trades fill and not have to baby sit them.
A Brief Reminder
Before we get to today’s trades, a brief reminder: subscription prices for the Portfolio Armor Substack are going up from $40 per month/$400 per year to $50 per month/$500 per year next Thursday, but current subscribers will be grandfathered into the price they’re currently paying. So if you’re a free subscriber, consider joining now. This week’s exits (which you’ll see later today) could have paid for an annual subscription multiple times over. If you join and change your mind, I’ll be happy to give you a prorated refund at any time.
Today’s Top Names Trade
Space / launch theme
