Trade Alert: Top Names

Bullish bets on two of our top ten names from Monday's close: a consumer stock and a European bank.

A Quick Exit Note

Before we get to today’s top names trades, a quick note on exiting a previous one, our $45-$60 call spread on Hims & Hers Health (HIMS 6.98%↑), detailed here:

HIMS tanked after hours yesterday, post-earnings, and it was trading at $55 and change in the pre-market, so I lowered my exit limit order to $10. I ended up getting out at that price, for a gain of 186%, but as I type this, the stock is currently trading at $61 and change, so if you haven’t exited yet, you may be able to get out now at a net credit of more than $14. No on to today’s top names trades.

Following the Data

A Consumer Leader & A European Bank From Monday’s Top Ten

Two of Portfolio Armor’s Top Ten from Monday made our cut for new trades today—one is a consumer name with a near-term catalyst, the other is a European bank. The bank isn’t a typical top name for us, but we’re going where the signal points. That’s a lesson we just revisited with TransMedics (TMDX 0.00%↑) last week: respect the algorithm over gut feelings when they diverge.

Why these two now

• Both ranked in Monday’s Top Ten by our model’s estimated 6-month return.

• Event windows are live (one with earnings this week), giving us a chance to harvest elevated near-term IV to reduce cost.

How we structured them (high level)

• We built positions designed to keep meaningful upside open while using short-dated premium to subsidize the longer-dated bullish leg(s).

• In both cases, the downside over the near term is defined by construction, and overall cash outlay is modest relative to potential upside.

Risk & timing note

• We’re sizing these as event trades, not core positions. If the near-term catalyst disappoints, the design limits damage; if it lands, we keep the right tail.

Today’s First Top Names Trade