Justin Saco Says the Market Got the AI Software Trade Wrong

Justin Saco of Saco Financial joins Jermal Chandler with a contrarian read on the AI software trade. During the so-called SaaS apocalypse, the market painted every software name as AI roadkill and sold them off together. Saco's point is that there are really two buckets: names that get replaced by AI, and names that bolt AI onto what they already do and turn it into a catalyst. His top conviction play in the second bucket is ServiceNow, a beaten-down name he thinks is making the stage one to stage two turn with strong fundamentals behind it. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 A resilient market, rates matter 00:35 Hunting beaten-down names turning up 01:06 ServiceNow, the top conviction play 01:36 The two buckets of AI software 02:36 Put spread to finance a call spread 03:30 A calendar spread alternative 04:39 Rocket Lab and the wheel 04:49 The Neutron rocket catalyst 07:03 When he'd sell puts on it 09:30 MicroStrategy as leveraged Bitcoin 11:00 Why Bitcoin has held up #tastylive #justinsaco #servicenow #rocketlab #microstrategy #aisoftware #wheelstrategy #bitcoin #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.