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In Praise Of Powell

Portfolio Armor's Photo
by Portfolio Armor
Thursday, Oct 30, 2025 - 5:23
Bitcoin and industrial imagery.

Another Powell Made Us Money On Wednesday

While Jerome Powell was trap-dooring markets and battering stocks, bonds, and Bitcoin on Wednesday, another Powell was paying us: Powell Industries (POWL 4.65%↑).
We exited a bullish options trade in the electrical-equipment maker that day for a 124% gain, continuing a pattern that’s defined this reindustrialization cycle: the macro Powell rattles traders, the micro Powell rewards builders.

It wasn’t our only win Wednesday: we also had profitable exits in four other names across our Top Names and theme lists.

  • Put spread on Sibanye Stillwater (SBSW -6.33%↓). Entered at a net credit of $0.27, as part of a 3-leg combo on 10/20/2025; exited (half) at a net debit of $0.15 on 10/29/2025. Profit: 44%.

  • Put spread on ITT (ITT 9.88%↑). Entered at a net credit of $1.70, as part of a 4-leg combo on 10/13/2025; exited at a net debit of $0.20 on 10/29/2025. Profit: 88%

  • Call spread on TTM Technologies (TTMI 7.07%↑ ). Entered at a net debit of $1.73, as part of a 4-leg combo on 8/15/2025; exited at a net credit of $4 on 10/29/2025. Profit: 131%.

  • Call spread on Powell Industries (POWL 4.29%↑). Entered at a net debit of $16.12, as part of a 4-leg combo on 8/6/2025; exited at a net credit of $40 on 10/29/2025. Profit: 148%.

  • Call spread on Myr Group (MYRG 4.30%↑). Entered at a net debit of $1.96, as part of a 4-leg combo on 9/11/2025; exited at a net debit of $6 on 10/29/2025. Profit: 206%.

(We post the results of all of our trades, win or lose, with full transparency. You can find our last 300+ trade exits here). 

Harvesting the Reindustrialization Trade

When we re-entered Powell Industries in early August—literally the same day we exited a profitable trade in the name—the idea wasn’t complicated.

It was the same story we’ve been telling all year: the new American industrial cycle is real, and the winners are the ones selling the picks and shovels to electrify it.

The Setup

Powell’s report that week disappointed traders short-term (EPS strong, revenue light), and the stock sold off sharply.

But the underlying story hadn’t changed—margins were expanding, backlog was at record levels, and valuation had normalized.

So we stepped back in—using a defined-risk options structure that let us keep unlimited upside if the market rediscovered the story.

The Payoff

It did.

On Wednesday, we exited that second Powell trade for a 124% gain on the call spread—right on schedule, following our rule of harvesting 80% of the width when available.
If Powell stays above $220 by late February (it closed at $408 yesterday) we’ll collect a bit more profit on that August 6th trade when we close the remaining put-spread floor.

No clairvoyance, no chasing—just process.

This trade fit the same template we’ve applied throughout 2025:

  • Energy / Reindustrialization: from transformers to uranium to grid automation.

  • Embodied AI: physical infrastructure enabling digital expansion.

  • Asymmetric optionality: risk capped, upside open.

Why It Matters

Powell’s resurgence isn’t an isolated win — it’s a data point in a larger pattern.

America is building again.

Factories, substations, and semiconductor fabs don’t exist in the cloud. They need wiring, steel, and switchgear—things made by companies like Powell.

And as this cycle compounds, those “old-economy” names start to look a lot more like the early-internet winners than the late-cycle laggards.

What’s Next

We’re already rotating into fresh setups. We have two trades tied up for later today: one tied to the crypto-industrial crossover, another anchored in classic freight and rail. Both follow the same rulebook: harvest volatility, define risk, and let the asymmetric upside do its work.

If you want a heads up when we place them, you can subscribe to our trading Substack below. 

You can also subscribe to the Top Names feature on the Portfolio Armor iPhone app—or use it to hedge, if you're afraid (Don't have an iPhone? Try our website). 

Afternoon Update

Today's trades: 

 

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