Trade Alert: Top Names
Bullish options bets on two of our current Top Names that are tied to our core themes.
Two More Top Names Trades
Portfolio Armor’s Top Names have continued to outperform. As of now, the names ranked in our Top Ten are averaging returns of 18.74% over the next six months, versus 10.10% for the SPDR S&P 500 Trust ETF (SPY 0.00%↑) over the same periods.
The two names we’re trading today both fit squarely within our core themes. One is tied to aerospace, defense, energy, and reindustrialization. The other fits our space/defense launch infrastructure theme. In both cases, we’re using options structures that let us participate in significant upside while strictly defining our downside risk.
One of these names was also a Top Name back in December, and we placed a bullish trade on it then. Since then, the stock pulled back meaningfully from its highs, but it has now reappeared in our Top Ten while still passing our RSI and Chartmill setup screens we use to avoid “falling knives”. That gives us a chance to place another bullish trade on it, this time going further out and with a structure that gives us room to participate if it makes a substantial move higher from here.
As always, we’re not just buying options outright and hoping for the best. We’re using structures designed to keep our risk tightly defined while still allowing for significant upside—more than 200%, in one case—if the stock moves the way our system estimates it can over the coming months.
Full details below of both trades below, including our pre-set exit triggers, so we don’t have to babysit them.
Today’s First Top Names Trade
Defense / energy controls / reindustrialization theme
