💎 SEI Massive $2.8M Bullish Bet on Data Center Power Revolution! 🚀

📅 November 21, 2025 | 🔥 Unusual Activity Detected

🎯 The Quick Take

Someone just dropped $2.8 MILLION on SEI options this morning at 11:01:05 in a bold bullish structure! This sophisticated trader sold $1.5M worth of $37.50 puts while simultaneously buying $1.3M in $45 calls, both expiring December 19th. With SEI trading at $42.04 and up +42.8% YTD after transforming from an oilfield services company into an AI data center power infrastructure play, this trader is betting big that the xAI partnership and 1 gigawatt power delivery story drives the stock to $45+ by year-end. Translation: A large institution thinks SEI's data center power boom is just getting started!

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📊 Company Overview

Solaris Energy Infrastructure (SEI) has completed a remarkable transformation from traditional oilfield services to AI-powered data center infrastructure:
- Market Cap: $3.02 Billion
- Industry: Oil & Gas Field Machinery & Equipment (now pivoted to Power Solutions)
- Current Price: $42.04 (near recent highs of $57.17)
- Primary Business: Provides natural gas-powered generation for hyperscale data centers, with 1+ gigawatt partnership with xAI (Elon Musk's AI company) to power the world's first gigawatt-scale AI facility in Memphis. Also maintains legacy logistics solutions for oil & gas operations.

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💰 The Option Flow Breakdown

The Tape (November 21, 2025 @ 11:01:05):

Time	Symbol	Side	Buy/Sell	Type	Expiration	Premium	Strike	Volume	OI	Spot	Strategy
11:01:05	SEI	ASK	SELL	PUT $37.5	2025-12-19	$1.5M	$37.5	5,800	-	$42.04	Short Put
11:01:05	SEI	ASK	BUY	CALL $45	2025-12-19	$1.3M	$45	5,000	-	$42.04	Long Call

🤓 What This Actually Means

This is a classic bullish structure combining income generation with upside speculation! Here's what went down:

• 💸 Put selling for income: $1.5M premium collected from selling 5,800 puts at $37.50 strike (~$259 per contract)
• 🚀 Calls for upside: $1.3M spent buying 5,000 calls at $45 strike (~$260 per contract)
• ⏰ 28 days to expiration: December 19th expiration captures Q4 earnings (late January 2026) runway and any year-end xAI deployment updates
• 🛡️ Downside protection: The $37.50 put strike sits 10.8% below current price - trader willing to own SEI at $37.50 if assigned
• 📊 Net position: Essentially paid $200K net debit ($1.5M collected - $1.3M spent) for this bullish position structure
• 🎯 Profit zone: Maximum profit if SEI rallies above $45 (calls print) while puts expire worthless

What's really happening here:

This trader has constructed a sophisticated bullish position that says: "I think SEI is heading to $45+ by December, but even if I'm wrong and it pulls back to $37.50, I'm happy to own this stock at that level." By selling puts, they're collecting premium to offset the cost of the call purchase - essentially getting long call exposure for just $200K net cost instead of $1.3M. If SEI stays above $37.50 and rallies through $45, they keep the $1.5M put premium AND profit from the calls - a potential home run scenario.

Unusual Score: 🔥 EXTREME (695x average size for puts) - This is roughly 3-4 times larger than typical institutional option trades in SEI! The Z-score of 16.22 and 97.67 on the two legs shows this is highly unusual activity. Combined $2.8M in option premium represents about 0.09% of SEI's entire market cap - a meaningful bet for a $3B company.

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📈 Technical Setup / Chart Check-Up

YTD Performance Chart

SEI has delivered solid returns - up +42.8% YTD with current price of $42.04 (started the year at $29.45). The chart tells a transformation story - after hitting a brutal low of $12.48 on September 30, 2024 (during the MER acquisition uncertainty), SEI exploded higher from $16 in late September to highs of $57.17 in late October.

Key observations:
- 🚀 Transformation rally: Vertical move from $25 in August to $57 in October on xAI partnership announcement and strong earnings
- 📉 Recent pullback: Stock has retraced from $57 highs to $42 (26% correction) despite strong Q3 results - likely due to $106M insider selling by KTR Management
- 🎢 High volatility: 96.0% annualized volatility shows this is a momentum stock with big swings
- 📊 Max drawdown: The -55.62% max drawdown reflects the September 2024 lows during the business transformation
- ⚠️ Consolidation phase: Trading in a $40-45 range for past two weeks after the sharp rally

Gamma-Based Support & Resistance Analysis

Current Price: $42.10

The gamma exposure map reveals critical price levels that will govern near-term price action:

🔵 Support Levels (Put Gamma Below Price):
- $40 - Massive support zone with significant put gamma concentration (the dominant blue bar) - this is the FLOOR
- $37.50 - Secondary support level with moderate put gamma (exactly where the put seller struck!) - deep value zone
- $35 - Extended support with smaller put gamma cluster

🟠 Resistance Levels (Call Gamma Above Price):
- $50 - HUGE resistance wall with massive call gamma concentration (the dominant orange bar) - dealers will fight rallies here
- $45 - Secondary resistance with moderate call gamma (exactly where the call buyer struck!) - first profit target
- $42-43 - Current consolidation zone with mixed gamma

What this means for traders:

SEI is trading in a defined range between strong $40 support and crushing $50 resistance. The gamma data shows market makers holding enormous positions at $50 which creates natural selling pressure as price approaches. This setup screams "range-bound consolidation" before the next major catalyst. The $40 level with massive put gamma is THE critical support - break below that and momentum could accelerate toward $37.50.

Notice the positioning? The option trader struck the $37.50 puts exactly at a secondary gamma support level, and the $45 calls positioned just below the major $50 resistance - showing sophisticated understanding of where the stock is likely to find support if it dips, and realistic upside targets below the major resistance wall.

Implied Move Analysis

Options market pricing for upcoming expirations:

• 📅 December 19 (28 days - THIS TRADE!): ±$7.82 (±18.67%) → Range: $34.07 - $49.71

Translation for regular folks:

Options traders are pricing in a 18.7% move ($7.82) by December 19th expiration. That's a MASSIVE implied move for a sub-$50 stock - reflecting the high volatility and transformation story uncertainty. The market thinks there's a real possibility SEI could trade anywhere from $34 to $50 over the next 28 days!

The upper range of $49.71 is very close to the $50 major resistance, while the lower range of $34.07 sits below the $37.50 put strike. This aligns perfectly with the option trader's thesis: they expect SEI to stay within this volatile range, ideally pushing toward the upper end ($45-50) where their calls profit, while the $37.50 puts provide a safety net if the stock pulls back harder than expected.

Key insight: The high implied volatility (18.67% move in just 28 days) means options are expensive - perfect for the put seller collecting premium, and still attractive for the call buyer who believes the stock will exceed this expected range to the upside.

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🎪 Catalysts

🔥 Already Happened (Past 3 Months)

Q3 2025 Earnings Beat - November 3, 2025 ✅

SEI reported strong Q3 2025 results with revenue of $166.84 million and raised Q4 EBITDA guidance to $65-70M (up from prior $58-63M range). Power Solutions segment now dominates the business with 53% sequential growth in Q2 and continued momentum through Q3. Despite the strong results, the stock gapped down on November 4 from $53.97 to $49.02 due to massive insider selling.

Major Insider Selling - Early November 2025 🚨

KTR Management (10% owner) sold approximately $106 million in shares immediately after Q3 earnings release. This represented about 3.5% of market cap and created significant selling pressure despite strong fundamentals. The timing suggests profit-taking after the transformation success rather than fundamental concerns.

Analyst Upgrades - November 2025 📈

Piper Sandler raised price target to $65 from $50 while maintaining Overweight rating on November 17. Barclays raised target to $61 from $44 in early November. Current consensus is Strong Buy with average 12-month price target of $64.06 (52% upside from current $42).

xAI Colossus Expansion - Q3 2025 ✅

xAI's Colossus facility in Memphis scaled to 900 MW capacity through the Stateline Power joint venture (50.1% SEI, 49.9% xAI). Seven SMT-360/Titan-350 natural gas turbines deployed at the Southaven, Mississippi site in Q3, providing power to what's becoming the world's first gigawatt-scale AI data center.

🚀 Upcoming (Next 6 Months)

Q4 2025 Earnings - Late January/Early February 2026 📊

Management raised Q4 EBITDA guidance to $65-70M, representing continued strong sequential growth. Key metrics to watch:
- Power Solutions revenue growth (segment now larger than legacy Logistics)
- Average megawatts generating revenue (Q2 was 360-420 MW average)
- Updates on additional data center contracts beyond xAI
- Capital expenditure deployment for turbine fleet expansion
- Dividend sustainability (current payout ratio of 109% is unsustainable)

xAI Colossus 2 Gigawatt Ramp - Q1-Q2 2026 🤖

xAI's Colossus 2 facility is being scaled to become the first gigawatt-scale AI data center in the world. Stateline Power will provide over 1 gigawatt of natural gas-powered generation by early 2027. At current data center power rates ($80-120 per MWh), 1 GW of continuous operation could generate $700M-$1B in annual revenue potential.

Risk factor: Environmental groups raised concerns about pollution controls that were initially promised but haven't materialized. Any regulatory delays could impact deployment timeline.

700 MW Turbine Deliveries - Throughout 2026 🏭

SEI announced securing 700 MW of additional gas-powered turbines in February 2025, with majority of deliveries expected throughout 2026. These turbines will bring the pro forma operated power fleet to approximately 1,400 MW by first half of 2027, supporting growth beyond the xAI contract.

Supply chain advantage: Natural gas turbines are largely sold out through the end of the decade, with GE Vernova ramping production from 48 to 70-80 turbines per year by 2026 to meet demand. SEI's early equipment orders position it favorably in a supply-constrained market.

Additional Data Center Contracts - Q4 2025-Q2 2026 🎯

SEI secured power service agreements for approximately 450 MW in Q3 2024 (over 80% of expected 2025 ending capacity), demonstrating strong customer demand beyond xAI. With data center power demand expected to rise 22% in 2025 and nearly triple by 2030, SEI is positioned to announce additional hyperscale contracts.

Probability assessment: 70-80% chance of securing at least one additional major contract (200+ MW) by mid-2026. Each 200-300 MW contract could add $140-360M in annual revenue at full utilization.

Dividend Announcement - December 2025 💰

SEI has paid 29 consecutive quarterly dividends of $0.12 per share ($0.48 annually = 1.1% yield). Next ex-dividend date is December 8, 2025, with payment on December 18. However, the dividend payout ratio of 109% is unsustainable as the company pursues aggressive growth capex. Watch for potential dividend policy adjustments in 2026.

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🎲 Price Targets & Probabilities

Using gamma levels, implied move data, and upcoming catalysts, here are the scenarios through December 19th expiration:

📈 Bull Case (40% probability)

Target: $48-52

How we get there:
- 🚀 xAI provides positive update on Colossus 2 deployment progress and confirms timeline for full 1 GW capacity
- 🏭 SEI announces at least one new data center power contract (200+ MW) with major hyperscaler
- 📊 December investor conferences (Goldman Sachs, Capital One) generate positive sentiment with 2026 guidance preview
- 💰 Management maintains dividend, signaling confidence in cash flow generation
- 📈 Broader market rally into year-end lifts momentum stocks and AI infrastructure plays
- 🎯 Analysts raise price targets further following strong Q3 momentum
- 💪 Breakout above $45 gamma resistance triggers technical rally toward $50

Key metrics needed:
- Confirmation of Q4 EBITDA in $65-70M guidance range
- Power Solutions segment margin expansion demonstrating pricing power
- Clear path to 1,400 MW operated fleet by H1 2027
- No new environmental or regulatory challenges at Memphis facility

Why 40% probability: The recent analyst upgrades (Piper to $65, Barclays to $61) and strong Q3 momentum support upside, but the stock needs a fresh catalyst to break through $45 resistance and overcome the recent insider selling overhang. The business transformation is real and executing well.

🎯 Base Case (45% probability)

Target: $38-45 range (CHOPPY CONSOLIDATION)

Most likely scenario:
- ⚖️ No major new catalysts before December 19th expiration - stock consolidates recent gains
- 📊 Holiday trading volume thins out, reducing momentum for breakout move
- 🔄 Trading within gamma support ($40) and resistance ($45) bands established in November
- 💤 Market digests the rapid transformation story and waits for Q4 earnings validation
- 🎢 Volatility remains elevated (96% annualized) with daily swings but no directional trend
- 🤷 xAI deployment progressing on schedule but no major announcements
- 💰 Dividend paid in mid-December provides modest support but no game-changer

This is the option trader's target scenario: Stock holds above $40 support and grinds toward $45, allowing the $37.50 puts to expire worthless (keeping $1.5M premium) while the $45 calls reach breakeven or slight profit. The net $200K debit structure is designed for exactly this scenario.

Why 45% probability: Stock has consolidated in a tight range for two weeks after the November gap down. With no earnings catalyst until late January and most major contracts already announced, there's limited near-term upside drivers but also strong fundamental support from the transformation story.

📉 Bear Case (15% probability)

Target: $35-40 (TEST PUT STRIKE SUPPORT)

What could go wrong:
- 😰 Environmental groups escalate legal challenges around Memphis facility emissions, forcing operational changes or delays
- ⚠️ xAI project timeline delays announced due to construction or permitting issues
- 🇨🇳 Broader macro weakness in AI infrastructure spending as hyperscalers slow capex
- 💸 Concerns about debt leverage ($980M projected by 2027) and dividend sustainability trigger selling
- 📊 Analyst downgrades or price target cuts following the insider selling signal
- 🔨 Break below $40 gamma support triggers cascade toward $37.50 put strike
- 🎰 Additional insider selling creates overhang and negative sentiment
- 💰 Dividend cut announced earlier than expected, disappointing income investors

Critical support levels:
- 🛡️ $40: Major gamma floor - MUST HOLD or momentum shifts bearish
- 🛡️ $37.50: Deep support at the put strike - likely strong buying here from put sellers
- 🛡️ $35: Extended floor - disaster scenario

Probability assessment: Only 15% because SEI's fundamentals remain strong (Power Solutions growing 53% sequentially, xAI partnership validated, raised guidance), and the put seller is willing to own stock at $37.50. The transformation thesis is intact even if near-term execution hits bumps.

Put seller P&L in Bear Case:
- Stock at $40 on Dec 19: Puts expire worthless, keep full $1.5M premium (100% profit)
- Stock at $37.50 on Dec 19: Puts expire worthless, keep full $1.5M premium (100% profit)
- Stock at $35 on Dec 19: Assigned stock at $37.50, paper loss of $2.50/share × 5,800 contracts = -$1.45M loss (offsets the $1.5M premium collected, nearly breakeven)

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💡 Trading Ideas

🛡️ Conservative: Cash Secured Put at $37.50 (Copy the Smart Money)

Play: Sell December 19th $37.50 puts and collect premium

Why this works:
- 🎯 Copying the exact trade structure that just deployed $1.5M
- 💰 Collect ~$260 premium per contract ($26,000 per 100-contract position)
- 🛡️ The $37.50 strike sits 10.8% below current price with gamma support - good entry if assigned
- ⏰ 28 days to expiration provides quick premium collection before year-end
- 📊 If assigned, you own SEI at $37.50 (below analyst consensus targets of $64), plus you keep the premium
- 💡 Requires $37,500 in cash per contract to secure the put (or margin if approved)

Action plan:
- ✅ Only sell puts if you're willing to own SEI at $37.50 (13% discount to current price)
- 📊 Start with 1-2 contracts per $75-150K of capital you're willing to deploy
- 🎯 If stock drops toward $40, consider rolling down and out to collect more premium
- ⏰ Plan to close position if stock rallies above $47-48 to lock in 80%+ of max profit

Risk level: Moderate (cash secured, defined risk) | Skill level: Intermediate

Expected outcome: 70% chance puts expire worthless and you keep full premium. 30% chance of assignment at $37.50 (still a good entry point given analyst targets).

⚖️ Balanced: Bull Put Spread (Defined Risk Version)

Play: Create bull put spread - Sell $40 puts, Buy $35 puts (December 19 expiration)

Why this works:
- 📊 Defined risk spread ($5 wide = $500 max risk per spread)
- 🎯 Targets major $40 gamma support where options activity is concentrated
- 💰 Collect ~$180-200 net credit per spread (36-40% max profit for 28 days)
- 🛡️ Protects against disaster scenario with the $35 long put
- ⚖️ Breakeven around $39.80 - gives 5.3% downside buffer from current $42

Estimated P&L:
- 💰 Collect ~$180-200 net credit per spread
- 📈 Max profit: $180-200 if SEI above $40 at December expiration (45% ROI)
- 📉 Max loss: $300-320 if SEI below $35 (defined and limited)
- 🎯 Breakeven: ~$39.80
- 📊 Risk/Reward: ~1:0.6 which is acceptable for a 28-day trade with 70%+ probability of profit

Position sizing: Risk only 3-5% of portfolio per spread (this is directional but defined risk)

Risk level: Moderate (defined risk, bullish directional) | Skill level: Intermediate

🚀 Aggressive: Buy Calls at $45 Strike (Pure Upside Play)

Play: Buy December 19th $45 calls (COPY THE INSTITUTIONAL BUY)

Why this could work:
- 🎯 Mirroring the exact $45 call structure that deployed $1.3M
- 📈 Only need 7% rally from $42 to $45 to reach breakeven
- 🚀 If SEI breaks through $45 resistance to analyst targets ($60+), calls could 3-5x
- ⏰ 28 days provides sufficient time for catalyst to emerge (xAI update, new contract)
- 💥 High implied volatility (18.67%) means big moves expected - perfect for calls
- 📊 December 19 expiration captures any year-end momentum and holiday trading action

Why this could blow up (SERIOUS RISKS):
- 💸 EXPENSIVE: Calls cost ~$260 each ($26,000 per 100-share lot)
- ⏰ TIME DECAY KILLER: Theta burns -$25-35 per day as expiration approaches
- 📊 Two-way risk: Stock could consolidate in $40-43 range and calls expire worthless
- 😱 Gamma resistance at $45: Need breakout through significant call gamma wall
- 🎢 Volatility crush risk: If stock stays flat, implied volatility drops, call value evaporates
- ⚠️ Need 10-15% rally to $46-48 to achieve meaningful profit after premium paid

Estimated P&L:
- 💰 Cost: ~$260 per call ($26,000 per 100-share contract)
- 📈 Profit scenario: Stock rallies to $50 = $500 intrinsic value, ~$240 profit (92% ROI)
- 🚀 Home run: Stock breaks to $55-60 = $1,000-1,500 intrinsic value (280-480% ROI!)
- 📉 Loss scenario: Stock stays below $45 = expire worthless (100% loss)
- 💀 Breakeven: ~$47.60 (need 13% rally from current)

CRITICAL WARNING - DO NOT attempt unless you:
- ✅ Can afford to lose ENTIRE premium (real possibility!)
- ✅ Understand you're betting on a 7-15% rally in 28 days in a stock that's consolidating
- ✅ Have a plan to take profits at 50-80% gains rather than holding for home run
- ✅ Can monitor position daily and adjust if stock breaks below $40 support
- ⏰ Accept that this is speculation, not investment

Risk level: HIGH (can lose 100% of premium) | Skill level: Advanced

Probability of profit: ~35-40% (need significant breakout in limited timeframe)

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⚠️ Risk Factors

Don't get caught by these potential landmines:

• 🤝 xAI customer concentration: The 900 MW contract with xAI through Stateline Power likely represents 50-60% of Power Solutions business through 2026-2027. Any delays in xAI's Colossus facility construction or AI training schedule reduces power demand. xAI is a private, high-growth company with significant capital needs - financial stress could impact payment terms. This is classic customer concentration risk.

• 🌍 Environmental and regulatory uncertainty: xAI and Solaris initially promised pollution controls but those haven't materialized as of September 2025. Risk of environmental groups challenging operating permits or regulators requiring expensive retrofits. Natural gas emissions policies could shift at federal/state levels, impacting economics. Probability of material regulatory intervention: 30-40% over next 12-18 months.

• 💰 Dividend sustainability crisis: SEI's dividend payout ratio of 109% is mathematically unsustainable. Company paying out more than it earns while pursuing aggressive growth capex. High probability (25-30%) of dividend reduction in 2026, which typically triggers 15-25% stock price declines for dividend payers. Income investors would exit on any cut.

• 📊 Insider selling signal from KTR: $106M insider sale by KTR Management immediately post-earnings (3.5% of market cap) raises concerns. While could be profit-taking or portfolio rebalancing, the timing and size suggest possible concerns about valuation or 2026 execution risks. Smart money reducing exposure at $50+ levels.

• 💸 Debt leverage with limited free cash: Debt projected to reach $980M by 2027 with leverage ratio of 1.6x EBITDA. New $325M term loan and $75M revolver to fund growth. If EBITDA growth disappoints or interest rates stay elevated, debt servicing pressures profitability.

• ⚔️ Competition from industrial giants: SEI ($3B market cap) competes against players like Cummins, Generac, Caterpillar with far greater scale, manufacturing capacity, and customer relationships. As data center power market matures, larger players could leverage economies of scale for competitive pricing that pressure SEI's margins.

• 🏭 Turbine supply chain dependency: While natural gas turbines are sold out through end of decade, any delays in GE Vernova's production ramp or supply chain issues could impact SEI's 2026 turbine deliveries and delay the path to 1,400 MW operated fleet.

• 📉 AI investment cycle risk: SEI's growth thesis depends entirely on sustained AI infrastructure spending by hyperscalers. Any pullback in AI capex (recession, model efficiency improvements reducing compute needs, investor skepticism about AI ROI) would devastate data center power demand growth and SEI's valuation.

• 🎢 Extreme volatility (96%) creates whipsaw risk: YTD volatility of 96% means SEI can move 5-8% on NO NEWS. This isn't a stable infrastructure play - it's a high-beta transformation story. The max drawdown of -55.62% in September 2024 shows how fast sentiment can shift. Recent move from $57 to $42 (26% decline) in just 3 weeks demonstrates the volatility challenge.

• 💵 Valuation at premium levels: At 48.87x P/E ratio, SEI trades well above industry competitors, reflecting growth expectations but also valuation risk. Stock is priced for perfect execution - any stumble in xAI deployment, contract delays, or margin compression could trigger 20-30% correction.

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🎯 The Bottom Line

Real talk: Someone just deployed $2.8 MILLION in a sophisticated bullish structure on SEI betting that the data center power transformation story drives the stock from $42 to $45+ by December. This isn't a reckless gamble - it's a calculated bet by institutional money that SEI's xAI partnership and path to 1+ gigawatt of power delivery is undervalued at current levels.

What this trade tells us:
- 🎯 Sophisticated player believes $37.50 represents deep value - willing to own the stock at that level
- 📈 Expects upside to $45+ by year-end despite recent consolidation and insider selling overhang
- ⚖️ The net $200K debit structure shows disciplined risk management - not betting the farm
- 💰 By collecting $1.5M in put premium to offset $1.3M call cost, they're essentially getting long exposure for minimal net outlay
- ⏰ The December 19 timing suggests they believe a catalyst emerges before year-end (xAI update, new contract announcement, or analyst conference commentary)

This is NOT a "back up the truck" signal - it's a "transformation story is real but execution matters" signal.

If you own SEI:
- ✅ Hold your core position - the data center power thesis remains intact despite volatility
- 📊 Set MENTAL STOP at $38-39 (below major $40 gamma support) to protect if momentum breaks
- ⏰ Watch for Q4 earnings in late January for validation of raised $65-70M EBITDA guidance
- 💰 Don't chase the stock above $45 - wait for breakout through resistance with volume confirmation
- 🎯 If you're up nicely from sub-$30 levels, consider trimming 20-30% to lock in gains while holding core

If you're watching from sidelines:
- 🎯 Current $40-42 levels offer decent risk/reward with $40 support and analyst targets at $64
- ⏰ Wait for either: (A) breakout above $45 with volume, or (B) pullback to $37-38 for better entry
- 📈 Looking for confirmation: xAI deployment milestones, additional contract wins beyond xAI, Q4 EBITDA in guidance range
- 🚀 Longer-term (6-12 months), the 1 GW xAI partnership and path to 1,400 MW by H1 2027 are legitimate catalysts for $55-65 if execution delivers
- ⚠️ Current volatility (96%) requires position sizing discipline - start small and add on confirmation

If you're bearish:
- 🎯 Wait for break below $40 support before initiating bearish positions
- 📊 Major support at $40 (gamma), secondary at $37.50 (put strike), extended at $35
- ⚠️ Fighting the transformation momentum and institutional bullishness is dangerous without clear catalyst
- 📉 Better to wait for evidence of xAI delays, environmental issues, or dividend cut before betting against

Mark your calendar - Key dates:
- 📅 December 8 - Ex-dividend date ($0.12 quarterly dividend)
- 📅 December 18 - Dividend payment date
- 📅 December 19 - Options expiration (this $2.8M trade settles!)
- 📅 Late January/Early February 2026 - Q4 2025 earnings ($65-70M EBITDA guidance)
- 📅 Q1-Q2 2026 - xAI Colossus 2 gigawatt ramp milestones
- 📅 Throughout 2026 - 700 MW turbine deliveries
- 📅 H1 2027 - Target for 1,400 MW operated power fleet

Final verdict: SEI's transformation from oilfield services to AI data center power infrastructure is REAL and executing well. The xAI partnership validates the business model, and the path to 1+ GW of power delivery creates significant revenue growth potential ($700M-$1B annually at full utilization). However, at $42 after a 26% pullback from $57 highs, the stock is fairly valued with analyst targets at $64 but also significant risks (customer concentration, environmental challenges, dividend sustainability).

The $2.8M institutional option trade shows smart money believes in the story but is positioning defensively with the $37.50 put floor and $45 call target. That's the right approach for retail traders too - believe in the transformation, but manage risk with defined entry/exit points. This is a show-me story that needs Q4 execution and 2026 delivery to justify moving materially higher.

Be selective with entry points. Respect the volatility. The AI data center power boom is real, but SEI needs to prove it can scale beyond xAI and navigate the execution risks.

Disclaimer: Options trading involves substantial risk of loss and is not suitable for all investors. This analysis is for educational purposes only and not financial advice. Past performance doesn't guarantee future results. The 695x unusual score reflects this specific trade's size relative to recent SEI history - it does not imply the trade will be profitable or that you should follow it. Always do your own research and consider consulting a licensed financial advisor before trading. SEI is a high-volatility transformation story with significant execution and customer concentration risks. Options can expire worthless, resulting in 100% loss of premium paid.

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About Solaris Energy Infrastructure: Solaris Energy Infrastructure provides power solutions for hyperscale AI data centers and logistics solutions for oil & gas operations. The company recently transformed its business model through the acquisition of Mobile Energy Rentals and strategic partnership with xAI to deliver over 1 gigawatt of natural gas-powered generation for AI infrastructure, with a market cap of $3.02 billion in the Oil & Gas Field Machinery & Equipment sector.