Back in the late ’90s, I watched the market soar higher day after day, and every week, another dot-com IPO would open at 200% above its offering price — often before anyone could explain what the company even did.

It was wild. 

And if you were smart, you could make a lot of money.

But I also watched guys lose their shirts trying to short the mania too early, or betting too big on stories with no staying power.

Now fast forward to today and I’ll tell you this: We’re not in another dot-com bubble.

But there are a few signs that remind me of those days, especially when I look at how the options market is reacting to anything AI-related.

Just like in the late ’90s, we’ve got a new technology that’s clearly going to reshape the economy. And the market knows it.

The difference this time is that AI’s already producing results.

Big Tech isn’t just selling a story. 

They’re spending billions, increasing productivity, and driving real revenue growth. 

Microsoft, Nvidia, Amazon are all executing. They’re printing numbers. 

That wasn’t the case for most dot-com darlings in ’99.

But here’s where the parallel starts to show…

When every company starts dropping “AI” into their earnings calls — and stocks start moving 20%, 30%, sometimes more on the back of rumors — that’s when I start paying closer attention.

Because regardless of whether a full-blown bubble is forming, this kind of action creates opportunity. 

Here’s how you can grab a nice juicy chunk of it.  

Opportunity Is Knocking

Let’s walk through a quick example.

Earlier this week, I watched a small-cap software name pop on news of an AI-powered strategic partnership. 

The volume in the calls went off the charts. 

Traders were chasing weekly out-of-the-money strikes like the business had just reinvented electricity.

Maybe it does have something real cooking. 

But here’s what I’ve learned from decades in this game: Hype doesn’t equal revenue.

And vertical charts don’t last forever.

You can trade that momentum, but you’ve got to be tactical.

Reverse Engineering

Here’s how I’m approaching this environment: I’m not chasing every no-name ticker that suddenly discovers “AI.” 

That kind of scattershot trading gets expensive fast. 

I stick with names that have real demand behind them, meaning strong fundamentals, serious earnings, and clear activity in the option chains. 

When I see institutional-sized orders showing up, that’s my green light. 

If the big money’s involved, I want to be right there with them.

And when I do take a shot, especially in names that are already running, I’m not swinging blindly. 

I define my risk by using structures like call spreads to get exposure to upside without putting my whole account at risk if the move fades. 

That lets me size the trade properly and lean in without stress. 

I’m also always watching for signs that the momentum is running out.

Back in the dot-com days, the biggest red flag wasn’t bad news — it was when a company delivered solid results, mentioned some buzzy tech, and the stock still dropped. 

That’s exhaustion. That’s when the story’s been priced in and everyone’s already long. 

When good news stops working, that’s when I start looking the other way.

Party Like It’s 2025

So no, this isn’t 1999 all over again.

The capital’s smarter and the companies are stronger. 

The infrastructure is real. 

But the emotions driving some of this price action are just as human as they were 25 years ago.

Which means for traders like us, there’s plenty of room to do well.

Just stay sharp and keep your risk tight. 

And remember: When people start buying stories instead of businesses, that’s when you want to have a plan, not a prediction.

Stay street smart,
Jeff Zananiri

P.S. Want to level up your trading game?

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*Past performance does not indicate future results