When markets reset they shake out weak hands before the next leg of supercycle.
Why?
Because the fundamentals did not break, demand did not disappear and AI capex did not collapse.
What broke was the sentiment and what snapped was the leverage.
This is not the end of the AI story. It is a reminder that even supercycles need to breathe and reset.
It is also a golden opportunity to bargain hunt. Top of my list is $NVIDIA(NVDA)$ which has fallen below the USD 200 psychological mark.
A good options strategy for NVIDIA is a cash secured put. It matches the psychology of a golden pit. If it drops, I buy cheaper. If it does not, I get paid.
It is a conviction strategy of owning the NVIDIA - the core of the AI trade.
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