This data center stock is up over 1000% in the last five years. Trader Mike Khouw sees more gains — SkimNews
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- Vertiv Holdings has climbed 1043% over the past five years on surging data center capex, supplying electrical power equipment, DC power systems, heat rejection, and cooling solutions from its Westerville, Ohio headquarters.
- Vertiv CEO Giordano Albertazzi delivered Q2 '26 results showing 24% growth in net sales and a 410 basis point expansion in adjusted operating margins, prompting the company to raise full-year 26 guidance across all key metrics and declaring momentum is 'strong, broad-based, and accelerating.'
- Vertiv's stock sold off post-earnings not on the outlook but on supply-chain related delays that pushed some sales into the second half, though shares have since recovered to sit just below the critical 150-day moving average.
- Vertiv is set to report next on October 22nd, with investor focus on whether supply chain issues persist or the company meets or exceeds its higher full-year guidance.
- Mike Khouw recommends a longer-dated January 240/290/340 call spread risk reversal priced close to even — in the worst case, the trade results in purchasing Vertiv at $240, more than 14% below current levels, with a max gain of $50, over 20% of the $240 short put strike.
- The options structure uses an early 2027 expiration to give flexibility on realizing gains or losses in 2026 versus 2027, though the resulting positions still trigger short-term capital gains or losses tax treatment.
Why it matters: Vertiv's trade hinges on whether October 22 earnings confirm that supply chain delays were a temporary speed bump, not a structural drag on the data center capex cycle. With shares up 1043% over five years and sitting just below the 150-day moving average, the January risk reversal lets traders position for a continuation of raised guidance without paying a premium for the upside.
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