I’m hearing lots of talks of the market being overextended. However, I’d like to talk about the bear case. The major catalyst for a bearish movement may be what is least expected – the outcome of the lawsuit between Elon and Altman. (This isn’t AI written, I use em-dash’s).
When that settles the results may cause a cascade of fear and panic with the outlook of AI. Considering the majority of the generative AI market is controlled by open AI and investments are cycled through open AI into all other sub sectors like ai cloud, infra, and cpu power, a negative end to the lawsuit could be detrimental in the short term.
The Altman vs Elon trial may be the catalyst to a bearish turn in the market
byu/UsualHelp9090 inoptions
Posted by UsualHelp9090
2 Comments
priced in
I’ve been leaning bearish for weeks. Sizing smaller, carrying net negative delta, being net long vega. It’s been challenging, but several longer-term plays, which were previously losers, eating up capital, causing me to have flat P/L, in the last three trading days have become profitable.
But OpenAI hasn’t even gone public yet. And there are several competing LLM’s which have comparable specs.