Markets
markets
Luke Kawa

Strategists sound alarm over silver’s rally, recommend options trades for potential violent reversal

Silver’s ridiculous romp higher in 2025 and at the start of this year is showing some signs of fraying around the edges.

And with just how fierce the move higher has been, strategists are warning of the potential for intense downside as some of the key parts of the fundamental and technical theses for silver are starting to look less solid.

Michael Purves, CEO of Tallbacken Capital Advisors, who’s been bullish on the shiny metal, thinks it’s once again time to hedge long exposure.

On Thursday, he recommended selling $95 strike calls on the iShares Silver Trust that expire in February to purchase $75 strike puts.

Purves previously recommended that clients hedge their silver exposure on December 26 (its 2025 peak) before declaring that the coast was once again clear for longs on December 30.

“It might be surprising to know that speculative long silver futures positions are at 20 month lows, or that Open Interest is at five year lows,” he wrote. “Once again, hedging long positions is in order — particularly given the distorted put-call skew which allows [investors] to sell calls to finance long put positions.”

Viresh Kanabar, an investment strategist at Macro Hive, followed this up on Friday by flagging one of several key changes in the market structure for silver. The physical market tightness, cited by bulls as an important driver behind silver’s skyward ascent, is showing signs of reversing.

“1m forwards on physical silver have flipped back to contango,” he wrote. “This lines up with physical ETF outflows and evidence that high prices are weighing on industrial demand.”

Silver contango

“In short, we are not bullish on silver at these levels, instead, see increasing signs of risks skewing to the downside,” Kanabar added.

David Cervantes, founder of Pinebrook Capital Management, told clients on Thursday that he’s taken a short position in silver by owning put options on SLV with three months to expiry, noting that its outperformance of the stock market over the past 100 and 252 days has reached unprecedented levels.

“THIS IS HIGHLY SPECULATIVE AND A SMALL GAMBLE-SIZED WAGER WILL BE MADE OVER WHICH SLEEP WILL NOT BE LOST,” he emphasized.

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Tasha Matsumoto
9h
S&P 500 gains while chip stocks drag down Nasdaq 100

In yesterday’s postmarket earnings report, Broadcom failed to move up its goalposts for AI chip revenue, sending AI-linked names lower during today’s trading.

Scottish Highland cattle in the pasture
markets
Paige Oamek

Quantinuum opens above IPO price and continues to rise as Wall Street remains hungry for quantum exposure

Wall Street is ready for even more quantum computing exposure. Shares of Quantinuum opened at $68, 13% above their initial public offering price, when the quantum company debuted on the Nasdaq Thursday.

The stock remained above the original pricing of $60 into Thursday afternoon. The Honeywell-backed company is pushing quantum technology further into the spotlight, raising $1.68 billion by selling 28 million shares, giving it a market cap of over $17 billion.

Investors have been piling into quantum computing stocks recently, with Rigetti Computing more than doubling over the past 12 months, while D-Wave Quantum is up almost 60% and IonQ has gained more than 63% over the same period.

In its May S-1 filing, Quantinuum said it has “active customer engagements primarily focused across pharmaceuticals, materials science, financial services, government and industrial markets, including with market leaders, such as JPMorgan Chase.”

markets
Helena Cheng

Applied Aerospace rises on second day of trading

Applied Aerospace & Defense shares are gaining on Thursday, though they’re still trading below their Wednesday IPO price of $20. Yesterday’s debut raised $650 million and put the company’s valuation at roughly $3.5 billion. Despite opening trading at $20.75, shares closed the day at just over $19.

Applied Aerospace manufactures components used in rockets, aircraft, and defense systems, including solid rocket motor cases, fuselage assemblies, and engine shafts. Its customers include companies such as Boeing and Anduril Industries. Separately, its IPO filing showed that its three largest customers accounted for roughly 59% of revenue in 2025.

Investors remain interested in defense-related listings as geopolitical tensions and military spending continue to drive interest in the sector.

“We’re right at the epicenter of doing really incredible mission work supporting next-gen interceptor development, which protects cities and countries,” CEO Trip Ferguson said in an interview with NYSE.

markets
Helena Cheng

Ciena sinks despite crushing Q2 estimates and raising full-year outlook

Ciena Corp. shares are plunging Thursday despite the network technology company posting Q2 earnings results that beat Wall Street consensus estimates and raising its full-year outlook.

Ciena stock has surged so far this year, gaining over 150% year to date including today’s drop.

Key numbers:

  • Revenue of $1.57 billion (compared to analyst estimates of $1.50 billion).

  • Earnings per share of $1.64 (estimate: $1.46).

  • 2026 full-year revenue guidance of $6.3 billion (estimate: $6.18 billion).

Revenue grew 40% year over year. That growth was anchored by the company’s core Optical Networking segment, which brought in $1.1 billion, while its Routing and Switching division nearly doubled to $174.2 million.

Management also raised its full-year fiscal 2026 revenue guidance to $6.3 billion (plus or minus $100 million). This marks a notable upgrade from its previous full-year target range of $5.9 billion to $6.3 billion. For the upcoming fiscal third quarter, the company anticipates revenues of $1.625 billion, exceeding the Wall Street’s expectations of $1.58 billion.

“Today’s results reflect the strength of our portfolio, the power of our business model, and disciplined execution in a dynamic supply environment,” Gary Smith, president and CEO of Ciena, said in a statement.

markets
Helena Cheng

PVH shares plunge on lowered revenue outlook tied to geopolitical tensions

PVH is plunging in early trading following the release of its Q1 report, as a lowered full-year sales guidance overshadowed an otherwise solid earnings beat. The company, which owns iconic brands Calvin Klein and Tommy Hilfiger, warned investors that ongoing macroeconomic and geopolitical tensions would impact international revenues.

The primary driver behind the stock collapse is a revised fiscal 2026 forecast that caught Wall Street off guard. Revenue is now projected to be “approximately flat” compared to the flat to slight increase it had forecast previously, with the prolonged war with Iran and its widening economic impact on the EMEA region cited as the cause. Revenue in constant currency terms for the EMEA region fell 5% during the quarter as a result of these disruptions. The company continues to expect growth in its Americas and Asia-Pacific businesses.

PVH continues to expect full-year adjusted earnings between $11.80 and $12.10 per share, which includes a roughly $3.30 impact from tariff costs and around a $1.70 benefit from tariff refunds.

“As we look forward, we are balancing two opposing forces: on one side, the increasing brand and business momentum we are driving in both Calvin and TOMMY, and on the other, the prolonged effects of the Middle East conflict, which is putting pressure on the consumer in EMEA,” Stefan Larsson, the CEO of PVH, commented in a statement. “We are adjusting to the moment, while keeping our long-term approach to fueling our brand and business momentum.”

For Q1 itself, PVH posted total sales that rose 2% year over year to $2.03 billion. The retail brand bounced back to an $88 million profit, or $1.90 per share, reversing a net loss of $44.8 million from the same quarter last year. Growth was anchored by the company’s direct-to-consumer sales, which grew by 6% on the back of strong performance in Calvin Klein denim and underwear, alongside Tommy Hilfiger outerwear.

Despite the sell-off, PVH stock has risen over 30% year to date.

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