Trade Alert: Top Names + Nuclear + AI
A bullish options trade on our #1 name, at the intersection of nuclear and AI.
The Nuclear Option Again
AI datacenters are going to have enormous power demands, and that is likely to lead to a renaissance in nuclear energy production. Our #1 name as of Thursday’s close is a company producing a newer kind of nuclear reactor, one that seems to be preferred by Silicon Valley types.
Today’s trade is a bet on this company’s shares being about 30% higher in six months, which is within the options market’s expected move for the stock. If we’re right, we could make up to 400%; if we’re wrong, we could lose up to 100%.
Heads we win 4x, tails we lose x.
Details below.
Today’s Top Names Trade
The company is Oklo (OKLO 0.00%↑), and the trade is a vertical spread expiring on June 20th, buying the $30 strike calls and selling the $31 strike calls, for a net debit of $0.20. The max gain on 15 contracts is $1,200, the max loss is $300, and the break even is with OKLO at $30.20. This trade filled at $0.20.
Exiting This Trade
I’m going to open a GTC order to exit this one at $0.95, and lower that price, if necessary, as we approach expiration.
I'm a new subscriber so this observation is just based on the last few days' posts. It seems your options strategy mainly uses buying calls and debit spreads. Do you sell credit spreads as well? If not, what's the rationale? Thanks.