Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Core Insights - The investor adopts a contrarian investment style, focusing on high-risk, illiquid options and shares, with a balanced portfolio of approximately 50% in each [1] - The investment strategy is centered around identifying stocks that have recently experienced sell-offs due to non-recurrent events, particularly when insider buying is observed at lower prices [1] - Fundamental analysis is employed to assess the health of companies, including leverage and financial ratios compared to sector and industry averages [1] - Technical analysis is utilized to determine optimal entry and exit points, using multicolor lines for support and resistance levels on weekly charts [1] Investment Strategy - The investor's timeframe for holding positions ranges from 3 to 24 months [1] - A thorough screening process is conducted to filter through thousands of stocks, primarily in the US, with occasional investments in less stable markets [1] - Professional background checks are performed on insiders who purchase shares following sell-offs, adding an additional layer of due diligence [1] Analytical Approach - The use of fundamental analysis focuses on company health, leverage, and financial ratios [1] - Technical analysis involves drawing trend lines and identifying support and resistance levels to optimize trading decisions [1] - The investor expresses a strong preference for straightforward communication, avoiding jargon and unnecessary complexity in investment discussions [1]

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach between equity and derivatives [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts [1] Stock Selection Criteria - Preference is given to stocks that have undergone a recent sell-off, particularly when there is insider buying at the new lower price, indicating potential recovery [1] - The investor screens through thousands of stocks, primarily in the US, but is open to owning shares in less stable markets, referred to as "banana republics" [1] - Professional background checks are conducted on insiders who purchase shares post-sell-off to ensure credibility and alignment with shareholder interests [1]

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach to risk and potential returns [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] Stock Selection Criteria - The investor screens thousands of stocks, primarily in the US, looking for those that have undergone recent sell-offs, particularly when insiders are purchasing shares at lower prices [1] - Professional background checks are conducted on insiders who buy shares post-sell-off, adding an additional layer of due diligence [1] Technical Analysis - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts, employing multicolor lines for clarity [1] - Trend lines are drawn in multicolor patterns to assist in visualizing market movements and potential price actions [1]

Core Viewpoint - The company emphasizes providing actionable and clear investment ideas through independent research, aiming to help members outperform the S&P 500 and avoid significant losses during market volatility [1] Group 1 - The service offers at least one in-depth article per week focused on investment ideas [1] - Members have reportedly achieved better performance than the S&P 500 while mitigating risks in both equity and bond markets [1]

Core Insights - APLD has experienced significant options activity, with a notable trade of 71,000 contracts for $25 calls, indicating potential bullish sentiment or a delta-neutral strategy [4][5][6] - The stock has seen a dramatic increase of over 200% in the past year, primarily due to its shift towards AI-focused data-center infrastructure [6][15] - APLD's recent financial performance shows an 84% increase in revenue year-over-year, but the company remains unprofitable with a net loss of $27.8 million for fiscal Q1 2026 [15][16] Options Activity - The large block of call options traded on Nov. 14 suggests that traders are positioning for a significant price movement in APLD, with a breakeven point around $26.50, approximately 12% above the stock's closing price [3][7] - Implied volatility for the options is at 114%, while historical volatility is around 97%, indicating elevated but not extreme volatility levels [2][22] - The surge in options volume coincided with a jump in share volume to 44 million, suggesting that traders are reacting to the options activity [8] Financial Performance - APLD reported $64.2 million in revenue for fiscal Q1 2026, marking an 84% increase from the previous year, driven by installation work for new AI clients [15] - Despite revenue growth, the company is still deep in the buildout phase and remains unprofitable, with a focus on transitioning to a recurring-revenue model [16][18] - The stock's valuation reflects high expectations for future growth, with a price-to-sales ratio of approximately 46x compared to a sector average of 3.4x [18] Market Sentiment and Future Outlook - Wall Street analysts remain positive on APLD, with nine out of ten rating it a "buy" and an average price target of around $40 per share, indicating potential upside from current levels [19] - The stock has pulled back roughly 36% from its October highs, creating a scenario where a short-term rebound could be plausible, especially with potential macro catalysts on the horizon [20][21] - The company's strategic pivot towards AI infrastructure and partnerships with major players like Nvidia positions it favorably within the emerging AI ecosystem [14][19]

Core Insights - The article highlights Alphabet Inc. (NASDAQ: GOOGL) as a standout investment opportunity during the current earnings season, noting its 100% win rate over the last four quarters and an average return of 85% in just seven days [1]. Company Performance - GOOGL is expected to report earnings after market close on October 29, and it has a strong track record with four consecutive winning trades before earnings announcements [5]. - The strategy of buying short-term, at-the-money call options about seven days prior to the earnings announcement has yielded significant gains of 68%, 113%, 98%, and 62% over the past four quarters, averaging an 85% return [5]. Trading Strategy - The recommended approach involves three steps: 1. Look for short-term (7-day) at-the-money call options [6]. 2. Enter the trade mid-week, ideally on Wednesday [6]. 3. Exit the trade before the earnings announcement, preferably the day before [6]. - A call debit spread is suggested as an alternative strategy to reduce costs and risks while still participating in potential gains [7]. Market Conditions - The article emphasizes the importance of capturing implied volatility (IV) ramp leading up to the earnings announcement, positioning GOOGL as a low-risk opportunity this quarter [4][7].

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach to risk and return [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] Stock Selection Criteria - The investor screens thousands of stocks, primarily in the US, looking for those that have undergone recent sell-offs, especially when insiders are purchasing shares at lower prices [1] - Professional background checks are conducted on insiders who buy shares post-sell-off, adding a layer of due diligence to the investment process [1] Technical Analysis - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts, employing multicolor lines for clarity [1] - Trend lines are occasionally drawn in multicolor patterns to assist in visualizing price movements [1]