Tentatively Bullish as a Potential Turnaround, Watch These 5 Stocks With Technical Strength and Aggressive Call Bets to Capture Alpha

A much softer-than-expected CPI print and stunning Micron earnings have offered a glimmer of hope for a falling market. Major indices staged a brief rebound despite persistently heavy selling pressure, but this ambiguity itself is creating opportunity. At this stage, some investors may pivot toward a tentative bullish stance as the picture becomes clearer, albeit with a higher degree of caution. With technical setups already turning constructive, we identified five stocks showing unusual call activity that could outperform the broader market in the short to medium term, better suited for more speculative traders.

Starting with the broader backdrop, the Nasdaq 100 turned higher after the recent sell-off, driven by a weaker November CPI that suggested the possibility of further rate cuts next year. That said, skepticism remains around the reliability of the data, with markets waiting for December's reading. Meanwhile, Micron's solid guidance and confirmation that its HBM capacity is fully sold out through 2026 reignited optimism around the AI cycle. While it is still too early to declare a definitive inflection point, if the index can stabilize at current levels, the odds favor a higher-low formation. The next few trading sessions will be critical. If the market fails to see another sharp leg lower, bullish momentum could build. From our perspective, a tentative bullish approach makes sense for those who do not want to miss a potential rally.

With sentiment shifting toward neutral to mildly constructive, investors may increasingly focus on alpha-driven opportunities. Several technology stocks are showing both technical resilience and surging options interest, creating the potential for outsized gains relative to the benchmark. Below are our five top ideas.

TSMC (TSM) remains a core beneficiary of the AI ecosystem. Regardless of whether Nvidia, Google, Broadcom, or Micron captures headlines, TSMC stands out as the sole advanced chip foundry with unmatched pricing power. The stock appears to have found solid footing at current levels and is unlikely to break prior support absent a major external shock, which makes the current setup attractive. AI remains a long-duration investment theme as more applications and deeper hardware and software integration continue to roll out, keeping the fundamentals intact. Options activity confirms this view, with 5,228 and 4,306 out-of-the-money(OTM) call contracts at the $300 and $320 strikes expiring next Friday, nearly six times the volume of at-the-money contracts.

Amazon (AMZN) is another potential AI beneficiary that remains underappreciated by many. The company highlighted surging cloud computing demand tied to AI in its latest earnings, reinforcing the growth outlook for AWS. Its backing of Claude and reported interest in investing in OpenAI point to broader adoption of AI agents across its ecosystem. Similar to Google, Amazon is also developing its Trainium ASIC chip, with OpenAI and Meta emerging as potential customers, further strengthening its long-term positioning. Technically, the stock rebounded from recent lows and is forming a possible higher-low pattern, suggesting further upside may follow. Options traders appear aligned with this view, with more than 11,000 open contracts across the $227.5, $230, $235, and $245 calls expiring next Friday.

After an aggressive phase of spending on OpenAI talent and Nvidia chips without immediate returns, Meta has shifted its focus back to execution at the product level, which may help restore investor confidence. Its fundamentals remain strong, and the company stands out as one of the most compelling AI monetization plays given its massive user base. Cost discipline, broader adoption of Gemini alongside in-house AI search initiatives, and improving operational leverage all support a constructive outlook. The technical picture is already improving, with a higher-low pattern in place and price action pressing against a key resistance zone. A breakout could open the door to further gains. Options traders are positioning aggressively as well, with nearly 10,000 contracts outstanding for the $700 out-of-the-money call expiring next Friday.

Shopify (SHOP) remains in a broader uptrend, though it is still trading below its late-October peak. The market continues to underestimate how collaboration with OpenAI could reshape the e-commerce landscape. While OpenAI has also held partnership discussions with Amazon, Shopify may be better positioned to deliver deeper and more adaptive integration, potentially accelerating AI-driven commerce. E-commerce represents OpenAI's first meaningful vertical expansion, and this partnership could unlock meaningful upside for both sides. Options positioning reflects this optimism, with 1,635 and 1,289 contracts at the $172.5 and $180 strikes, roughly five times the at-the-money volume.

Arm has been one of the more pessimistically viewed AI chip stocks this year, despite announced collaborations with Nvidia and Google. Investor caution has increased amid speculation that the Intel and Nvidia partnership could reduce Arm's strategic priority. However, technical indicators suggest extreme pessimism may already be priced in. The RSI recently fell below 10, even lower than levels seen in April when Trump announced aggressive reciprocal tariffs. This level of oversold sentiment improves the odds of a tactical rebound. For traders with a higher risk appetite, Arm could offer attractive short-term upside.

In conclusion, amid muted sentiment, the brighter side of the AI narrative is beginning to re-emerge. Markets have largely digested negative headlines while starting to recognize that underlying growth drivers remain intact. As we move into 2026, AI is likely to stay a core thematic investment, though selectivity will matter more than broad exposure. For investors willing to be stock-specific, the potential for alpha remains compelling.