ChatGPT knows what’s going on

BY ANDREW GIOVINAZZI

June 12th, 2025

Yo Pit Crazies,

AI is transforming the way we work, and I believe it’s going to make a lot of people significantly more efficient. Check out Hans for a fresh take on some overlooked AI developments.

In today’s State of the Market—our daily review that blends market insights with a touch of practical “how-to”—I explored whether AI could generate predictions based on the possibility of Israel targeting an Iranian nuclear site.

👉Watch the replay here!

Hannah used ChatGPT to generate some very interesting answers. Meanwhile, my favorite indicator is also starting to show some intriguing signals.

What are the winners and losers if Israel bombs Iran?

ChatGPT pulled together this list of trade ideas. Interestingly enough—right at the bottom—is a long volatility play:

UVXY – Ultra VIX Short-Term Futures ETF.

It also flagged the product as “very risky” — and rightly so. UVXY moves like a house on fire and has lost about 99% of its value since inception. That said, during short bursts of market volatility, it can spike to some pretty wild highs.

6 month UVXY chart

UVXY had been steadily melting down over the past two weeks—until rumors about Iran started swirling and the U.S. State Department advised embassy personnel to leave the Middle East. It feels like the Trump administration might be putting some pressure on Iran, at least in my opinion. The ETF jumped nearly $2 off its lows and held those gains into the close.

I think VIX and UVXY are pretty much in a holding pattern until the weekend as markets wait for potential headlines. Then we’ve got the FOMC, where Powell is likely to tell President Trump that rate cuts aren’t happening. If everything plays out as expected, UVXY could drop below 19 next week. But if Israel strikes the reactor, UVXY could easily jump $6 or more.

For more on AI, check out Hans.

Here’s the full list ChatGPT pulled: