Trade Alert: Top Names + Momentum Pullback

A bullish bet on our #1 name from last night, LIDAR leader Ouster. Plus, a bonus trade on a global broker growing faster than Robinhood while trading at a lower valuation.

A robotic forklift equipped with Ouster’s Lidar sensors.

Two Trades That Fit Our Playbook

Ouster (OUST 0.00%↑) — our #1 name Tuesday night — sits squarely in our Embodied AI theme we wrote about last month.

We just closed two successful trades on it last week:

1. Puts on Ouster (OUST 11.01%↑). Sold for $3.77 as part of a risk-reversal on 6/25/2025; bought-to-close for $0.91 on 8/14/2025. Profit: 76%^*

2. Calls on Ouster (OUST 11.01%↑). Bought for $4.50 as part of a risk-reversal on 6/25/2025; sold (half) for $10 on 8/14/2025. Profit: 122%

*Profit on spread premium; 18% profit on max risk (i.e., if the OUST puts had been exercised and the stock went to $0).

A Rough Day For Growth/Momentum

Yesterday OUST pulled back with other momentum names. As Goldman Sachs trader Julia Masch noted, when high-beta momentum drops >10% over 5 days, the next week has been positive 80% of the time.

That backdrop, plus our playbook, sets up today’s trades.

One Stock Too Expensive To Buy Calls On…

Over the weekend we drafted an Options Trading Manifesto to sharpen our process and lock in a few tweaks. All else equal, for bullish ideas we prefer uncapped long calls. We did exactly that with OUST in our recent risk-reversal. Today, though, OUST’s calls are too pricey, so we’re leaning into the expensive IV: a financed structure (similar to yesterday’s nuclear trade) that pays us up front (net credit), puts break-even near spot, and still gives us >150% upside if the move hits.

…And One Not

Our second trade targets a broker that competes with Robinhood (HOOD 0.00%↑) globally, but with faster growth (Chartmill Growth Rating 8/10 vs. HOOD at 7/10) at a lower valuation (Chartmill Valuation Rating of 6 vs. HOOD at 2). Here, calls are cheap enough, so we’re using long calls for uncapped upside, sized to our risk cap.

Earlier this year, we had a >1,000% winner on HOOD calls.

1. Calls on Robinhood Markets (HOOD -1.91%↓). Bought for $2.30 on 10/31/2024; sold (half) for $33.50 on 2/13/2025. Profit: 1,443%.

Ideally, we’ll have similar luck with its less-expensive competitor over the next several months.

Details on both trades for paid subscribers are below.

Today’s Top Names Trade