Technology

Puts on nvidia and palantir is what he bought, basically, with palantir:nvidia at 8:2 ratio so he has far more confidence palantir will blow up (in a bad way).

Note that if you don’t know what this means, or if your only knowledge of “buy puts” is buying them via an app like robinhood, keep in mind you don’t know nearly enough about the risk involved and this could blow up in your fucking face real bad.

Especially in the unlikely scenario AI crashes extremely hard (eg palantir goes to 0) and you have a naked put - using today’s closing price of $190 if you chose a strike of $180 your max profit is $285 per contract but your max theoretical loss is like 18,000 per contract if it drops to 0 (again, unlikely, but a more realistic scenario wherein it drops to say, $150 - you’re out almost $3k per contract). With a naked put your goal is for the price to hit the target, basically, so the closer to 180 the better (without dipping below) and this wouldn’t be a good idea for what you’re asking, but just an example of how the wrong play could lose you tons of money. A naked call goes the other way and as a result can be infinite loss. Retail investors (ie you) have lost six figure sums playing with this, life ruining shit, avoid avoid avoid

Options that are safer if you don’t want to get this involved in what is ultimately literal gambling: take a degree of separation. Instead of puts directly on nvidia or palantir puts on qqq, xlk, aiq, or some other etf that is made up of AI bullshit. Spreads risk but limits payoff. Use the strategy this nerd used: long dated puts. Keep in mind this is more expensive up front and for the retail investor you’ll generally max out 6-12 months realistically. He did 4-5 years out but that came with additionally complexity (especially for the billions in contracts he held) which meant tens of millions in payments to secure the contracts each year, which made his investors furious (though they ended up eating shit because he made them 730 million and over 100 million for himself on top of that).

Just keep in mind that options trading has ruined many people who know what they’re doing and it’s ruined way way more who have no fucking clue but think they do (I’m in this category). For every dipshit that makes millions off of gamestop there’s probably a hundred people or more like the people from reddit that post shit like this

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Don’t end up like that person. There are so many of them on reddit. They succeed with a few trades, get up 5k, 10k, 50k, then get greedy and have mad hubris and believe they’re now “elite traders” so they piss it all away, often in a handful of trades over a few days/hours because the loss causes them to panic and try to recover with foolish long shots. The sad thing is you’ll read some where it’s like “I’ve been poor my whole life and I finally got a 30k inheritance, got it to 45k” and then a screenshot like that where they pissed it all away in a day to functionally hand it to some 1%er nepo baby hedge fund manager who is worth 15 million and has never wanted for anything in their life. Then they talk about all the debt they could’ve paid off and it’s like “what the fuuuuuckkk duuuudeee”

Don’t buy naked puts and absolutely do not ever buy naked calls, which have unlimited risk, though I don’t know why you would in this scenario (or ever really). If nothing else please at least read this part.

If you have positions in companies that are overvalued due to the AI bubble, you can sell them or better yet place a stop loss. That way you can still benefit from the bubble further inflating, with less risk that you hold the bag at the end.

Other than that, invest in unrelated companies/ETFs with less weight on these companies. You'll still crash with the rest of the market but should recover faster than those in the AI bubble.

Don't try to do anything fancy. You'll have to gamble to time the pop and even if you're right, you may still get outperformed by someone with just an S&P500 ETF over that time.

Less risky: sell stock you hold in nvidia or other AI heavy companies. Invest in non AI.
Risk to the max: short nvidia stock. Each month they don't crash, your wallet hurts.

Just know that Burry is more confident in Palantir crashing than Nvidia (considering how much he's shoring each).

If you're in the US, that's just part of daily life at this point. Employment? Food? Water? Shelter? Sanity? Hope? 🤷🏼‍♂️ Pick three, and roll' em!

You can't "generally" bet against it with any reasonability. You need to be specific.

If you want to gamble on WHEN the AI bubble will pop, you buy large amounts of cheap puts on big-tech at a price substantially lower than where it is today.

Sell your index funds and tech stocks.

Buy Berkshire Hathaway (who’s sitting on a big pile of cash for crash buying, as they do), Walmart, and bread and butter ones, companies that make things folks would still buy in a recession (like groceries).

Don’t mess with shorts. You don’t know when the bubble will burst, and these companies will make you money even if it never does.