OpenAI Stock Selloff: Market Divergence

My 20-Cent Answer to the OpenAI Miss

Mark Sebastian

Hey everyone,

Around midday Thursday, news leaked that OpenAI’s revenue came in near $50 billion. The market wanted $70 billion.

The AI trade took it on the chin. Nvidia (NVDA), Micron (MU) and SanDisk (SNDK) all had ugly days, and the Nasdaq 100 closed down 1.4%. Meanwhile, the equal-weight S&P 500 (the same 500 stocks, each one held in the same size) finished the day higher.

I’ve watched that gap open up for two months, and Thursday has me asking whether we just saw a sea change. I walk through the charts in today’s Water Cooler Talk, and I show you the trade I like on it. The options cost a little over 20 cents.

Your only option,

Mark Sebastian

Trader's Edge

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

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About the Author

Mark Sebastian

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.