ChatGPT Gets Sued
Before we get into one of the most popular trading strategies millionaires will use in 2024 to make money, let’s review a trend that gripped 2023 by the throat: AI and an interesting counter-attack.
In 2023, many people were excited about Artificial Intelligence (AI). When CEOs talked about it, their company’s value went up. But, it also caused problems.
The New York Times is upset with OpenAI and Microsoft. They say these companies used their stuff without permission for ChatGPT, a popular AI app. The Times is suing for billions, saying it hurt their work.
The Times thinks using news without asking is not right. They say if Microsoft and OpenAI want to use their work, they must ask first. Many others also sued, saying the same thing.
The worry is that people might use AI chatbots instead of going to news websites. This could make less money for news companies. The Times says the chatbots copy their style and content, spreading wrong information and taking away their money.
To solve this, OpenAI partnered with a German media company, Axel Springer. They can now use Axel Springer’s stuff by paying a fee.
Did you Drink Champagne for New Year’s?
If you took in the New Year with a festive drink year, odds are you popped a cork with some bubbly.
As any Francophile will gladly inform you, true champagne comes only from the region of France bearing the same name.
And here in the U.S., we really love our champers.
That makes us the world’s largest importer of the stuff — ahead of the U.K. and Japan.
How Millionaires will make money in 2024
Are you looking for a strategy to potentially profit from a stock you believe will rise over time? Consider the diagonal call spread, a versatile options trading strategy that allows you to benefit from both time decay and upward price movement.
Understanding Diagonal Call Spreads
A diagonal call spread involves buying and selling call options with different strike prices and expiration dates. This strategy allows you to capitalize on the gradual appreciation of a stock while minimizing the upfront cost compared to a straight call option.
Steps to Trade a Diagonal Call Spread
Choose an Underlying Stock:
Begin by selecting a stock that you believe will experience a gradual upward movement over time. Conduct thorough research on the stock’s historical performance, potential catalysts, and overall market conditions.
Select Call Options:
Purchase a longer-term call option (usually several months out) with a strike price near the current stock price. Simultaneously, sell a shorter-term call option with a higher strike price. This creates a diagonal spread.
Evaluate Risk-Reward Ratio:
Assess the risk-reward ratio of your trade. While the potential profit is limited, the upfront cost is lower compared to a traditional call option. Define your maximum loss and potential gain before entering the trade.
Manage Expiry Dates:
Pay attention to the expiration dates of both call options. The goal is for the short-term call option to expire worthless, allowing you to keep the premium collected while maintaining ownership of the longer-term call.
Monitor the Trade:
Keep a close eye on the stock’s performance and any relevant market news. Adjust your strategy if needed, especially as the expiration date of the short call approaches.
Close or Roll the Trade:
As the short call option nears expiration, you can choose to close the entire trade or roll the short call to a later expiration date. Rolling allows you to collect additional premium and potentially profit from the stock’s continued upward movement.
Diagonal Call Spread Profit Profile
Presented below is the profit profile for our existing Diagonal Call Spread on Southwest Airlines at CFU.
The opportunity to secure full profit arises if LUV can conclude above 30.00 by January 19. Alternatively, should this not materialize, initiating another short call option for February or March provides an avenue to further trim our cost basis effectively.
The eventual closure of this position for profit is anticipated in the year 2024.
This trading strategy has proven to be potent, yielding remarkable results.
CFU Results From Last Week:
These are profits we locked up from the week ending December 29:
NVDA 65%
TSLA 55%
ADI 36%
FDX 29%
COIN 50%
NVDA 80%
CRM 23%
NVDA 42%
AI 82%
NVDA 48%
CMA 82%
Member Results:
I know it’s hard to believe, but our members booked a combined $1,376,400 in profits in December alone. Here is just ONE member:
If you haven’t joined CFU yet, what is stopping you?
Here, I’ll throw you a deal, 25% off your first month so you can ease in, see the quality of our trading services and the results we will produce for you within 4-6 weeks. You can cancel at any time. But you won’t because the edge you gain by trading with us is second to none.
PROMO: CFUINSIDER25
Look forward to seeing you inside,
Stephen
President, CFU
