r/TheRaceTo10Million

+114.7% revenue growth. Seven straight quarters of triple digits.
And $CRDO is still 30% below its highs.
That's either the opportunity or the warning.

Credo makes the chips that move data at insane speeds inside data centers. As AI clusters scale up, the connections between chips become the bottleneck. That's their lane and the Oct 8 Open CPX optics wave just put it center stage.

Whale check 🐋 —80.46%. The +33% month on real volume says money's moving.

So why 30% off highs with these numbers? Two reasons: the market hasn't repriced the growth or it's waiting on the H2 optical proof. Real risks: two customers are 61% of revenue, and retail interest is running hot.

Health update in two parts. Chart: above both rising averages, golden cross intact, $216.55 with room to the $231.59 weekly high. Company: debt-free, ~$764M cash, 33.8% net margins. It prints money and owes nobody.

Valuation is the fun part. PEG around 0.7. For 114% growth, that's absurdly cheap; anything under 1 is rare air. Paying for growth the market hasn't repriced yet.

Near term: the Oct 8 optics wave is fresh fuel; $231.59 is the next wall. Stifel kept its Buy but trimmed its target to $310 still way above here. Long term: management guides H2 optical past $600M. Levels: $209 support held twice. Under $205, I'm wrong.

If this thesis plays out, the H2 optical inflection lands, $600M+ revenue shows up, consensus target $262.67 implies about +21% from here. If it breaks under $205 instead, forget everything above. Educational only. Not financial advice.

This week was overall not that great as I got a LQDA 58 put assigned. The normal rule of the strategy is to sell calls at assignment price but the LQDA lawsuit news can't be ignored. So, instead of immediately selling and taking a loss, I sold next week's 30 call. As usual, will post trades as I make them. Today's a busy day. So will come in a trickle. Returns are still excellent in spite of the assignment.

Returns so far

Strategy

• Use an AI screener to give me a list of top 20 low delta options for next week
• I either
• a. Roll my current options - I do this if I can still get 1% for rolling or if the option is ATM/ITM and I have to roll. I always roll for credit.
• b. Close a current option and pick something else from the list that I like
• I try to do this every Friday. However, if I'm busy on Fridays, I'll sometimes do this on Thursdays.
• If I get assigned, I will sell calls at assignment price (unless news causes me to exit)

AI Prompt

I give this prompt to brokerbotics AI:

find me 20 unique lowest risk puts to sell on stocks
expiry: next week
strike at least 8% from stock price
return at least 1%
sort by delta
furthest away from stock price
minimum strike price 10

A lot of people have asked me about why I don't add a criteria to avoid earnings weeks. Like I sold an HPE put across earnings last week. That's because on earnings weeks the same delta strikes are much further OTM.

Results

Historical Performance: