Trade Alert: Swinging For The Fences

A bullish bet on one of our top ten names from Friday: an AI equipment stock with 25% short interest.

Our Top Names Cross a New Threshold

For a while now I’ve been saying that the performance of Portfolio Armor’s top names has nearly doubled the return of SPY since I launched this Substack back in December of 2022. As of Friday, that “nearly” is gone—over 127 rolling six-month periods, the top names have now delivered more than twice SPY’s performance. You can see the underlying figures here:

https://portfolioarmor.com/performance-top-names

Below is the chart of the June 5th top names cohort, the one that pushed the cumulative outperformance decisively over the 2× mark.

And as strong as the stock-only performance has been, regular readers know the hierarchy we operate under: security selection → structure selection → trade execution. The names themselves give us the raw performance potential; the structures we use give us the ability to magnify that potential asymmetrically, especially when volatility or positioning sets up a favorable skew.

Today’s top-name trade fits that profile well. The company behind it sits at the intersection of two of our core themes: the rise of high-performance computing and the growing need for more efficient power capacity—and it’s small enough that it gives us real torque. It also has about 25% short interest, which means a positive catalyst could spark a squeeze, and I’d like to be in position before that happens.

Full details below in the paid section, including pre-set exit instructions so we don’t have to babysit the trade once it’s on.

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Today’s Top Names Trade

(Theme: Power-efficient semiconductors for AI)