Going short on AI is an absolute bad idea, says KKM Financial's Jeff Kilburg

Core Insights - The discussion revolves around the trading strategies involving options, particularly focusing on Michael Burry's recent trades and the implications of using options versus equities [1][2][3] Options Trading Strategy - Options may be less aggressive than shorting stocks directly, as the maximum loss is limited to the premium paid for the options [1] - The notional value of options can be misleading, as it is calculated by multiplying the size of the option trade by the current stock price, which may not reflect the actual risk [1][4] - The specifics of the options, such as expiration dates and whether they are in or out of the money, remain unclear, making it difficult to assess the trade's aggressiveness [4][6] Market Context - The conversation highlights the volatility of stocks like Palantir and Nvidia, with Nvidia being valued near $5 trillion and Palantir around $500 billion, indicating a significant market presence [4] - The historical context of Burry's previous trades, such as his early call on subprime mortgages, suggests that timing can be critical in options trading [3] Volatility and Costs - High volatility in stocks like Palantir leads to higher costs for purchasing options, making it more expensive for investors to follow similar strategies [6][8] - The potential for using put spreads as a strategy is mentioned, which could mitigate some costs compared to outright shorting the stock [7]