OpenAI’s Loss Is Microsoft’s Gain
OpenAI has experienced a tumultuous period lately. The company, known for its ChatGPT chatbot, received significant investments from Microsoft. However, its CEO, Sam Altman, was recently ousted by the board due to alleged communication issues. Efforts to reinstate Altman were unsuccessful, leading to his replacement by Emmett Shear, former CEO of Twitch, a gaming-oriented social media platform owned by Amazon. Microsoft later announced Altman’s recruitment to lead their new AI research team, along with Greg Brockman, another former OpenAI executive.
Back at OpenAI, the majority of its employees, including top figures like co-founder Ilya Sutskever and interim CEO Mira Murati, signed a letter demanding the resignation of the remaining board members. They threatened to join Altman at Microsoft if their demand wasn’t met, citing concerns about the board’s competence and the impact on OpenAI’s mission.
In response, OpenAI reappointed Altman as CEO, introduced a new board chair, Bret Taylor, and welcomed former U.S. Treasury Secretary Larry Summers as a director. Despite this shuffle, analysts predict that Microsoft will benefit from the changes.
Following Microsoft’s hiring of Altman and Brockman, their stock reached an all-time high above $377, with some analysts, like Dan Ives from Wedbush Securities, suggesting it could go even higher, setting a price target of $425 for Microsoft.
Inflation is Finally Trimming Out:
Inflation has been a major concern lately, causing prices to soar and affecting how people spend. Some retailers, like Children’s Place, fell short of expected earnings, while even those meeting expectations, such as Target and Walmart, predict modest holiday sales.
The good news is that signs indicate inflation is slowing down. The U.S. Bureau of Labor Statistics’ October Consumer Price Index showed flat prices, a positive shift from the 0.4% increase in September. On a yearly basis, prices rose by 3.2%, still higher than the 2% target, but it’s progress that may allow the Federal Reserve to ease its interest rate hikes.
Take a look:
NFTs are DEAD
Remember those non-fungible tokens (NFTs)? They’re like special digital things you can buy on the internet.
NFTs are unique and represent digital stuff like art, GIFs, or videos. They use blockchain, which is the same tech as Bitcoin and Ethereum. When you buy an NFT, it’s like owning the digital file for that thing.
The priciest NFT ever sold was a digital picture by an artist named Beeple. It got $69 million! But here’s the catch: NFTs aren’t “real.” You can’t hang them on your wall. In 2023, a study found that 95% of over 73,000 NFTs are now worth almost nothing, now worth between $5 and $100. Not great for those that bought into the story, but great that investors are coming around to see what value really is.
Weekly Trading Strategy
At CFU we trade 3 sentiments:
Bullish – Stock will rise
Bearish – Stock will decline
Neutral – Stock will trade sideways
We are not afraid to enter into a bearish trade, or a bet that the stock or underlying asset will decline in price in the short term.
Here is one of our favorite ways to trade this sentiment:
Call Credit Spread
A call credit spread, or bear call spread, is a strategy in options trading. It’s used by investors who think a particular asset’s price will either stay the same or go down. Here’s a simple way to understand it:
Choosing Options: Imagine you pick two options for the same thing. First, you sell a call option with a lower price. At the same time, you buy another call option with a higher price. Both options expire on the same date.
Strike Prices: The sold call option has a lower price, close to what the thing is worth now. This option gives you some money upfront (a credit). The bought call option has a higher price, kind of like an insurance in case things go wrong.
Net Credit: You get a bit of money (credit) for selling the lower-price option. This is the most you can make from the trade.
Profit and Risk: You make the most money when the thing’s price stays below the lower-price option at the end. Your possible loss is limited, and there’s a point where you break even.
Market Outlook: This works best when you expect the thing’s price won’t rise much.
Closing or Waiting: You can end the trade early if you want to make some money or limit losses. If you wait until the end, things get settled.
Call credit spreads are a way for people to make money when the market is neither too good nor too bad. But remember, it comes with risks, and it’s important to understand them before trying it out.
Here is an example:
STO SPY 121523 460 C
BTO SPY 121523 465 C
Limit 1.55
This gives us $155 to trade that SPY will end December 15 at or below 460. This generates a return of 45% on the risk we take. ($155 return on $345 of risk)
The green box below shows our profit area, and see how the 465 long call hedges our upside risk?
At CFU we always remain hedged at all times.
At CFU we are masters of trading Spreads, Iron Condors, PMCC’s and Cash Secured Puts. Our results for 2023 have been incredible as we endeavor to make our members money each week.
Trading Results at CFU for last week earned by Members
ASML: 48%
NICE: 52%
AVGO 47%
TSLA: 98%
TSLA: 95%
TSLA: 89%
SPY: 43%
NVDA: 94%
Actual member results:
Options Action and Weekly Income are our official trading systems:
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 service and the results we will produce for you personally!
PROMO: CFUINSIDER25
Look forward to seeing you inside,
Stephen
Founder, CFU
