Trade Alert: Top Names + Picks & Shovels
Bullish options trades on three picks & shovels plays that appeared in our Top Ten names Monday night.
Still Bullish, Despite The War
Recent news supports our original view that the Iran war is more likely to be resolved sooner rather than later. The latest shift was President Trump’s decision to suspend his Iran deadline by five days to allow time for diplomacy (and, presumably, for the 31st Marine Expeditionary Unit to arrive in the region). In addition, Saudi Arabia has publicly suggested it might join the war against Iran. All together, this increases the pressure on Iran to either make a deal or for the regime itself to splinter into factions, one of which might be amenable to a deal.
That supports our approach since mid-February: after hedging ahead of the Iran war,
We’ve been selectively adding long exposure rather than assuming every headline means imminent market collapse. And today we’re looking to add more long exposure, with bullish trades on three of our system’s Top Ten names from Monday night.
Three More Top Names
As regular readers know, Portfolio Armor’s Top Names have done very well over time. The current version our security selection algorithm has more than doubled the average performance of the SPDR S&P 500 Trust (SPY 0.00%↑) since December of 2022.
The three names we’re looking at today are all different kinds of picks-and-shovels businesses. One makes advanced specialty materials used in aerospace, defense, and high-end industrial applications. Another makes probe cards and test equipment used in semiconductors. And the third is one of the key equipment suppliers to the chip industry itself, with a structure we’re using to target its projected May earnings setup.
Full details on all three trades below, including our pre-set exit orders, as usual, so we don’t need to babysit these trades.
Today’s First Top Names Trade
Specialty materials / aerospace and defense theme
