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Monday, September 22nd
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“The hardest thing to explain is the glaringly evident which everybody has decided not to see.”
– Ayn Rand
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This 87% indicator is back with a new entry you’ll want to see now!
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Major Market Events
- Nvidia Backs OpenAI — Chipmaker pledges up to $100 Billion for AI data centers, sending shares higher
- Stocks Hover Near Records — Indexes search for direction as traders weigh AI headlines and Fed commentary
- Gold Extends Record Run — Safe-haven demand and rate expectations push gold to its best year since 1979, up over 40% year-to-date
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🤔 My Thoughts
SMR Follow-Up: What Happened After “Power → Nuclear”
How last week’s nuclear trade worked out… overnight!
On Thursday’s Profit Panel, I laid out a simple case: power is the bottleneck for AI, and that’s why nuclear is getting real policy attention again.
Today I want to show you what happened next with one of the names we discussed: SMR (NuScale).
First, the setup in one line. We weren’t chasing a headline. We were watching for price strength into the close, and we used defined-risk trades so we knew the worst-case loss on day one.
Here’s how it played out between Thursday and Friday:
- Debit spread: The call spread we sent out was up about 45%.
- Straight calls: One viewer reported about +285% on a simple call.
- Shares: I was up about +20% on stock that day.
Those are real, same-week results from a name we put on the list on Thursday’s Profit Panel. It doesn’t always move that cleanly, but this is what “have a plan, then act on proof” looks like when the stars line up.
A few plain takeaways you can reuse:
- Have a “why,” then wait for a “when.”
The “why” was clear: the UK–US nuclear cooperation headline plus a real-world power shortage for data centers. The “when” was price strength that held by the close. We did not guess, we waited. - Use simple structures.
If options are new, a call debit spread is a clean way to cap risk. You buy a call and sell a higher-strike call with the same expiration. Your max loss is what you paid. That’s it. If you prefer shares, that’s fine too — just size small so a normal pullback doesn’t knock you out. - Set exits up front.
Into strength, I’ll often take partial profits around +50% on a spread, or sooner if price stalls. If price closes back below an obvious support line, I’m out on the next open. Cash beats “hope.” - Don’t force thin names.
We also mentioned Rolls-Royce last week. In the U.S. it trades over-the-counter as RYCEY. OTC names can have lighter trading and little or no options. If I touch those, I keep the trade small and stick to shares.
Where this leaves us now
The theme — power first, nuclear as a real solution — still makes sense to me.
I’ve got SMR/NuScale on my active list, along with BWXT as a steadier name, and Constellation Energy (CEG) as a power-side play we already walked through.
But nothing changes my process: I will wait for daily closes that hold, and I want options activity to support the move. If price action doesn’t confirm, I wait. Watching is a decision.
Friday’s “power → nuclear” idea wasn’t theory. SMR moved, and the defined-risk plan did its job. I’ll stay patient, keep size sensible, and only press when price and options activity agree.
Click here to watch the on-demand replay!
And don’t forget to register your spot here to join us next time we go live!
To Better Trading,
Alex Reid
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