Trade Alert: The Nuclear Option

Bullish bets on nuclear energy and crypto following our Peloton win.

Update On A Lottery Ticket

Before we get to today’s trade alert, a quick update on a previous one. Peloton Interactive (PTON 0.00%↑) was one of the two “lottery tickets” mentioned in the trade alert below, from last month. It’s up about 26% today, as I type this, after beating earnings and announcing that it hired the cofounder of Apple Fitness as its new CEO.

I sold half of my calls on it today for a 250% gain, and am holding the rest for now.

Now onto today’s trade alert.

Nuclear Energy And AI

The data centers being built out to run artificial intelligence consume so much energy, that it’s leading to a renaissance in nuclear power, as exemplified by this month’s Google news (“Google signs deal with nuclear company as data center power demand surges”). One of the best analysts I follow on X (one who was also bullish on PTON) had highlighted two nuclear names as favorites; last night, one of them appeared in Portfolio Armor’s top ten names. Today, we’re betting on both of them.

The third name we’re betting on today is a crypto-related name that has three things going for it today:

1. It’s one of our top ten names.

2. The same analyst who was bullish on PTON likes it.

3. It’s down double-digits after a slight earnings miss.

Details below.

Nuclear Trade #1

The stock is Centrus Energy (LEU 0.00%↑), and our trade is a vertical spread expiring on April 17th, buying the $120 strike call and selling the $125 strike call for a net debit of $1.25. The max gain on 3 contracts is $1,500, the max loss is $500, and the break even is with LEU at $121.25. This trade hasn’t filled yet. This trade filled at $1.17 on 11/4/2024.

Nuclear Trade #2

The stock is Uranium Energy (UEC 0.00%↑), and our trade is buying the $8 strike calls expiring on May 16th, for $1.20. The max gain on 4 contracts is uncapped, the max loss is $480, and the break even is with UEC at $9.20. This trade hasn’t filled yet. This trade filled at $1.20 on 11/1/2024.

Crypto-Related Trade

The stock is Robinhood Markets (HOOD 0.00%↑), and the trade is buying the $32 strike calls expiring on June 20th, for $2.30. The max gain on 2 contracts is uncapped, the max loss is $460, and the break even is with HOOD at $34.30. This trade filled at $2.30.

Exiting These Trades

For the first trade, assuming it fills, I’m going to set a GTC order to exit at $4.50 to $4.75, and lower that, if necessary, as we approach expiration. For the other two trades, I’ll set orders to exit half of my calls at about 2x what I paid for them, in case we get a spike on an earnings release prior to expiration. And of course, I’ll sell the calls I still have before expiration for whatever I can get for them.