$XLU

Does he own it?

He pitched XLU long-dated OTM call LEAPS as a once-a-generation trade and later said his new XLU calls were up triple digits, implying he holds an options position. But he frames it as an actively-traded rotation idea, not a core long, and gives no position size or weight.

His thesis

XLU is his flagship "AI power bottleneck" trade: utilities/grid as the boring sector about to be re-rated. Thesis rests on explosive data-center electricity demand, hundreds of billions in hyperscaler capex into the grid, a US-vs-China energy arms race, and a rate-cut cycle that lifts utility valuations. He notes heavy concentration in independent power producers (VST, CEG) and historically low option IV, making long-dated OTM LEAPS his preferred high-leverage expression.

How his view evolved

Started Feb as a detailed LEAPS pitch and macro thesis, reinforced repeatedly through late Feb/March as the trade moved and his calls gained. By April it had cooled into just one name among 30 he likes, with XLU slightly negative in his tracking list.

Key points

• Core thesis: AI data-center power demand plus rate cuts re-rate the boring utilities sector
• Preferred vehicle is long-dated OTM call LEAPS; cites low IV as the edge
• Treated as an active rotation/momentum trade, kept separate from his stated core longs

Derived from a holistic read of his public posts — paraphrased, never quoted. See his actual posts about $XLU on X ↗