👀 Read on Forbes Advisor

🕒 Market Overview: PBD is an inexpensive option that could offer significant value if the current environment shifts from traditional to alternative energy production and consumption, as the midterm elections approach.

📈 Sector Insight: While the ETF has doubled to over $18 in early March 2026, it remains less than half its 2021 high. PBD could offer value if the clean energy policy makes a comeback over the coming months.

💡 Today's Trade Idea: Bull Call Option on PBD.

SMART TRADE IDEA 💡

Bull Call Option on PBD

Trade Setup: Buy $20 Call August 21, 2026, expiration.

Cost: $1.00 or lower ($100 per option)

Max Profit: Unlimited
Breakeven: $21.00 on PBD on August 21, 2026
Risk-reward: 1: Unlimited

Management Plan: Take profits or roll to a higher strike or longer expiration with a higher strike at the same period if PBD reaches $21 per share before August 21, 2026.

NOTE: Remember, options trading involves substantial risk and is not suitable for all investors. Consider your investment objectives, financial resources, and experience level before implementing this or any options strategy.

DISCLOSURE: Trade recommendations may have changed since publication. Evaluate current market prices and risk/reward before acting. Trading involves significant risk and is not suitable for everyone. This is not personalized investment advice. Past performance doesn't guarantee future results. Publisher and contributors may hold positions in recommended securities. Readers assume full responsibility for their trading decisions. Consult a financial professional before investing.

Powering the AI Era Requires More Than One Fuel

I remember traveling to Japan often when my children were young. I would always visit the toy stores in Tokyo to find out which items would be most popular in the U.S. over the coming years. Japanese innovation has led the consumer products sector for decades. 

In the quest for lower emissions, Japan’s Kawasaki is launching the first hydrogen-powered gas engine that generates power with 30% hydrogen.

Powering the world is becoming a central issue as AI data centers will require increasing energy over the coming years.

Source: MIT Technology Review

Data center energy consumption is forecast to double over the next five years. Therefore, AI is only boosting demand for all forms of energy, including traditional and clean, green sources.

The bottom line is that the demand for traditional and green energy solutions is growing, and could be a golden investment opportunity. The Invesco Clean Energy ETF (PBD) invests in companies operating across utilities, hydroelectric power generation, electric power by solar energy, electric power by wind, alternative energy sources, biofuels, independent power and renewable electricity producers, renewable electricity, technologies that focus on the generation and use of cleaner energy, and conservation and efficiency sector seniors. Many of PBD’s holdings are growth and value stocks.

Japan’s hydrogen power innovation is another sign, along with AI innovation, that powering the world requires more innovative solutions.

While the Trump administration has shifted U.S. energy policy to support traditional fuel production and consumption, the 2026 midterm elections and the recent Supreme Court ruling on tariffs could create roadblocks to the current administration’s policy goals.

Source: Barchart

The monthly chart shows that PBD dropped by over 78% from its January 2021 high of $41.26 to its April 2025 low of $9.02 per share. While the ETF has doubled to over $18 in early March 2026, it remains less than half its 2021 high. PBD could offer value if the clean energy policy makes a comeback over the coming months. Technical resistance is at the July 2023 high of $20.36, the February 2023 high of $21.83, the August 2022 high of $25.08, and the April 2022 high of $26 per share.

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