AI Stocks — Paid to Wait: Covered Calls Cushion the Fall

The companies that build AI fell 13.2% in a week and the ones that run it 10.5% — Kioxia −41.3%, Ibiden −37.7%, Lumentum −35.9% — while the applications and the users held.

The VIX, the market’s fear gauge, rose from 19.42 to 25.64, and fear makes options expensive. So the Hypergrowth book sold calls on the shares it owns and took in 32,395 dollars of premium. Across the covered lines the premium now covers a further fall of 17.1%. This diary reads the straight bull run in AI stocks as possibly over for a few months; in a …