The AI revolution isn’t running on ideas—it’s running on data. And right now, the biggest challenge for data-hungry workloads isn’t the compute power of GPUs, it’s the bottlenecks that come from moving and accessing information fast enough to keep pace. That’s where one corner of the market has stepped in with cutting-edge solutions built to eliminate those choke points, making high-speed, high-volume access to data possible at scale. As Wall Street pours capital into the AI infrastructure boom, companies at the center of this mission-critical backbone are seeing their momentum surge. And with this stock in particular breaking out on the charts, it’s becoming the kind of move that traders need to start paying attention to.

The company I’m focused in on is Pure Storage (PSTG) — a leader in all-flash storage technology that’s becoming indispensable to the AI data center build-out. Wall Street is fired up because this isn’t just another hardware play: its systems are engineered to maximize the efficiency of high-cost AI compute clusters, ensuring that every GPU dollar spent delivers peak performance. Strategic partnerships with some of the biggest names in cloud and enterprise IT are only fueling the story further. With AI spending accelerating, PSTG’s position at the crossroads of storage and speed has become a magnet for capital flows — and the stock is reflecting that excitement with a powerful, sustained uptrend that shows no signs of slowing.

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What truly pushed PSTG onto my Buy List is the unmistakable momentum breakout flashing on the charts. In late August, the stock’s 24/52-day MACD line surged above its 18-day EMA — a move I track closely because it often signals the start of a fresh, durable uptrend. Since then, the signal hasn’t just held — it’s grown stronger, confirming that buyers remain firmly in control. As long as this alignment stays intact, it suggests that the stock isn’t just climbing, it’s building the kind of compounding momentum that can deliver outsized gains. In short: this isn’t a head-fake, it’s a high-conviction technical trigger that demands attention.

For this setup, I’m not looking to chase with a simple call purchase— instead, I’m targeting an ITM call debit spread. Why? Because while the technicals and momentum are strong, I also want a buffer built into the trade. Options in PSTG are carrying rich premiums right now, and rather than fight that, I’m going to use it in my favor. By structuring the trade as a call debit spread, I can capture that extra time premium and translate it into higher reward potential. In fact, there’s a spread available today offering a 62.6% profit potential if shares finish up, flat, or even down as much as 7.5% by expiration. That kind of high probability setup — where the stock doesn’t even need to rip higher for the trade to win — is precisely the type of trade I look for.

And if you want to learn how to spot and execute trades like this consistently, you cannot afford to miss our Optioneering Newsletter. Each week, we deliver multiple actionable setups plus deep dives into the exact strategies that give traders an edge. Right now, you can grab your first month for just $1 — four full weeks of trade alerts and strategy breakdowns for mere cents per week! Don’t wait… this trial deal is an absolute steal, and it’s the perfect time to get in. Click below to get signed up now and ensure the next alerts are on the way to your inbox!

Wishing You the Best in Investing Success,

Blane Markham

Chief Trading Strategist

Author, Trade of the Day

Have any questions? Email us at dailytrade@chuckstod.com

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