this post was submitted on 05 Nov 2025
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The investor who bet against the US housing market in the run-up to the 2007 financial crisis has now placed a significant wager on the collapse of the artificial intelligence (AI) boom.

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[–] Atlas_@lemmy.world 8 points 9 hours ago* (last edited 9 hours ago)

What?

Lot of confusion in this post.

Buying a call or a put always has limited downside, which is the amount you used to purchase the contract. Now, it's still super easy to lose your shirt, but far from the "infinite loss" (it's not infinite, just unbounded) parent mentions.

It is much riskier to sell options. Don't sell options. The one scenario that possibly has "infinite loss" is if you SELL a naked call. Many brokers will not let you do so.

But most of that is besides the point. The way that you would make this play as a retail investor is buying puts. On Nvidia or what you expect to crash directly. If you think the whole market, then SPY. DO NOT BUY OPTIONS ON ALREADY-LEVERAGED INSTRUMENTS LIKE QQQ. It doesn't work out like you would hope - it's not extra leverage, you just get eaten by decay.