Trade Alert: Three Swings At The AI Stack
Bullish options bets on three layers of the AI stack, spanning market caps from micro to large.
Still Above The 50-Day EMA
Yesterday’s trades didn’t fill, but two of the names still pass our screens this morning, and both are still trading above their 50-day exponential moving averages.
So we’re trying again with new structures.
The 50-day EMA screen remains useful in this tape. A stock can look “not overbought” simply because it has fallen hard and paused. Requiring new bullish trade candidates to be above their 50-day EMA helps us avoid names that are already breaking down.
Today’s third trade also passes that screen. It’s above its 50-day EMA and appears to be bouncing above its 21-day EMA in the premarket.
Three Different AI-Stack Angles
Today’s trades give us three different ways to express the broader AI-infrastructure theme. Two come from our Market Watchers X list; one comes from our Multibaggers subset of that list, comprised of accounts with documented recent >100% gainers.
The larger-cap trade sits in the enterprise AI / data-center hardware lane: servers, infrastructure, and the physical systems enterprises need as AI moves from pilot projects to real deployments.
The Multibaggers trade sits in a less obvious part of the stack: advanced semiconductor packaging and AI chip assembly/test. Chips don’t turn into deployable AI systems without packaging, testing, and manufacturing capacity behind them.
The micro-cap trade is the speculative slot. It’s a previous winner for us, and we exited a prior options trade in it last month for a gain of more than 500%. The stock has since pulled back sharply, but management has announced a share buyback and ended its ATM program.
The Speculative Setup
That capital-structure cleanup helps the setup.
The dilution story had been one of the obvious overhangs. Remove that overhang, add current short interest around 28%, and the name has dry kindling if a new catalyst hits.
That doesn’t make it a higher-probability trade. It makes it a high-convexity one. We’re pairing it with two cleaner AI-infrastructure trades where the theme, technicals, and business quality line up better.
Full details below.
Today’s First Market Watchers Trade
Enterprise AI / data-center infrastructure theme
Screen data: RSI 60; Chartmill Technical Rating 10; Chartmill Setup Rating 6; Chartmill Fundamental Rating 6; trading above its 50-day EMA.
