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.
Today’s Top Names Trade
(Theme: Power-efficient semiconductors for AI)
The stock is Navitas Semiconductor (NVTS 0.00%↑), and our trade is a combo consisting of these three legs:
Buying the $12 strike calls expiring on June 18th, 2026,
Selling the $9 strike puts expiring on March 20th, 2026, and
Buying the $7 strike puts expiring on March 20th, 2026,
For a max net debit of $1.65. The max gain on 2 contracts is unlimited, the max loss is $730, and the break-even is with NVTS at $10.48. This trade filled at $1.55.
Exiting This Trade
My plan:
NVTS
• Calls (leg 1): Open a GTC limit order to sell half of the calls at $7.50. No later than 30 days before expiration, I’ll post an updated target for the remaining call(s) in the comments here.
• Put spread (legs 2 & 3): Open a GTC limit order to exit at a net debit of $0.20, and raise that price if necessary as we approach expiration.
Out of the NVTS put spread today at $0.20.