💡Trade Idea for Thursday, Aug 20, 2026

Today I’m going right back to one of my strongest repeat performers. This is what I mean when I talk about being systematic. I’m not searching for a new name every day just for the sake of making a trade. When a stock I know well has produced for me repeatedly and the setup comes back around, I’m going to keep working it.

The chart is giving me that opportunity again. The stock has recovered nicely from its recent lows, but the latest push ran into resistance around the longer-term moving averages and has pulled back. RSI is sitting near neutral and MACD has flattened out, so I’m not dealing with an overextended move. More importantly, I can place my cash-secured put underneath the current market and below the recent trading range, with the premium pushing my breakeven lower still. I don’t need the stock to break out for this trade to work.

I also continue to like what is happening underneath the chart. The business has been rapidly shifting toward AI cloud infrastructure, signing large multi-year contracts while building out a massive secured power footprint. Demand for its planned capacity continues to exceed what it currently has available, and management recently raised its AI Cloud revenue target after adding billions in new customer contracts. That combination of scarce power, contracted demand and continued expansion is a big reason this remains one of my go-to names.

This setup carries a 65% Probability of Worthlessness (POW), giving me a solid chance to simply keep the full premium. The 72% Probability of Profit (POP) is higher because the premium lowers my breakeven below the strike, so the shares can even finish below my strike at expiration and the trade can still be profitable.

For me, this is textbook Wheel Strategy. A repeat performer comes back into a favorable range, I sell fresh premium at a level I’m comfortable with, and I’m perfectly willing to take the shares if the market sends them my way.

Here’s how I’m playing it today.