Public trading strategy
Legacy telecom crumbles while space tech booms — long Rocket Lab over AT&T
Thesis
The traditional telecom sector is in turmoil as Verizon and AT&T face structural threats from satellite internet providers like Starlink, alongside leadership exits. Contrast this with Rocket Lab, an innovative space company that is acquiring Iridium to expand its telecom and data network capabilities. Investors are clearly rotating capital away from legacy communication infrastructure and into next-generation space and satellite networks, favoring RKLB over legacy carriers.
Strategy approach
Build a pairs-trade strategy on RKLB vs T using D1 timeframe. Enter long RKLB and short T (Delta-neutral sizing) when RKLB makes a 20-day high on the same day T makes a 20-day low. Close the trade when the 20-day spread narrows by 5% or after 45 days.