7 Comments
User's avatar
Woodams Clark's avatar

I'm staying on the sidelines. Doesn't matter if expectations have bubbled, or if Nvidia can keep wowing investors.

The huge run up is old news at this point, and while it could keep going, everyone is asking (or thinking to themselves) when it will stop while side-eying each other - it won't take much to convince everyone it has stopped.

All that in a "Window of Weakness"...I'll watch and admire from the sidelines 🙂

What I have been thinking about though - and think is way more interesting - is how the benefits of AI will trickling down into the corporate consumers of AI over the next years (decade??)

I could see Walmart using this in their self checkout cameras to identify and reduce (deter) theft.

I can see Wall Street using this for better/faster insights in market trends

We're all waiting for Siri, Alexa, Google Assistant 2.0 - the type of assistant they were always meant to be to widen those moats.

Amazon is planning to use this for their warehouse robots, I'm sure.

Remember Amazon's employee-less stores? Idk if Amazon will keep chasing that, but other retailers wouldn't mind replacing clerks and other labor forces with no AI.

UPS/FedEx optimizing mail routing?

Nvidia is reaping in the cash, but the trickling down we should see cost savings from the corporate consumers of AI. AI has large potential to eliminate warm bodies from tedious/mundane tasks, and amplify more "critical thinking" work forces.

AI feels ripe to gnaw away at unskilled labor as it develops.

Another "industrial revolution" of sorts. With the benefits and the controversy

Expand full comment
FinanceTLDR's avatar

Ya you're right on here about the implications of AI. I'm thinking the same. Empowering critical thinking part of the work force and expose / make redundant the tedious / mundane tasks.

AI is doing to intellectual labor what motors did to physical labor.

Expand full comment
Woodams Clark's avatar

Of course I posted that, then asked myself "maybe time to play with straddles?"

The only thing I don't expect is price stagnation

Expand full comment
FinanceTLDR's avatar

The straddles are expensive though, but SPY march straddles were incredibly cheap a couple weeks ago. Just 3% for at the money. Pretty crazy.

Expand full comment
Woodams Clark's avatar

Yeah I checked and I’m priced out lol. I suppose it’s the obvious move

Expand full comment
FinanceTLDR's avatar

Same here, though I've sometimes wondered about "biased" straddles. Like what if you don't go 50/50 calls and puts, but 30/70 calls and puts, for example, if you are biased on the downside.

Expand full comment
Woodams Clark's avatar

That's an idea. Maybe there's something in that to match volatility skew of a stock? I don't know much about it in practice, I just started reading about it yesterday

Expand full comment