Warren Buffett just broke his silence — but with billions instead of words.

After sitting on a historic mountain of cash, Berkshire Hathaway finally moved … buying a nearly $5 billion stake in Google’s parent company, Alphabet. 

Meanwhile, the fund belonging to venture capitalist Peter Thiel sold its entire stake in Nvidia (somewhere between $94 million and $100 million). 

As we recently discussed, SoftBank also recently sold out of its Nvidia stake to the tune of $5.8 billion. 

Then there was that whole ruckus about Michael Burry of “Big Short” fame trying to short Nvidia and Palantir before abruptly closing his hedge fund, Scion Asset Management. Note that Peter Thiel is a co-founder of Palantir. 

That’s a lot of whales swimming in the opposite direction right before Nvidia’s most anticipated earnings report, which is set to come out Wednesday.

Clearly, the timing isn’t random here. These guys are being tactical. 

And if that weren’t enough, the Fed is once again experiencing some turbulence — not over interest rates this time but for a stock-trading scandal inside the central bank. 

You just can’t make this stuff up. 

While Jerome Powell’s crew gears up for the final rate decision of the year, it turns out at least one Fed official was trading stocks at suspiciously convenient times. 

It’s another distraction at the worst possible moment.

So what does all this mean for us, as options traders?

This week is a turning point.

A Key Lesson for Traders

Buffett isn’t just making a passive bet on tech, since Alphabet’s been lagging the rest of the Magnificent Seven. 

Buying in now signals Buffett believes the second-tier tech names could become first-tier winners in 2025. 

That’s a rotation bet, plain and simple.

If he’s right — and this is the beginning of a bigger push into undervalued AI infrastructure and advertising plays — it could light up the options market heading into year-end.

But you can’t ignore what’s happening on the other end of the trade. 

Nvidia reports earnings Wednesday, and sentiment is stretched so tight it squeaks. 

This stock is up over 48% YTD, and it’s been the star of every AI conversation in 2025. 

Everyone wants to know: Can they possibly deliver enough to keep the fire going?

Thiel and SoftBank are voting no with their wallets. So was Burry. 

That doesn’t mean they’re right, it means they don’t want to be left holding the bag if Nvidia stumbles.

And that’s the key lesson for options traders right now.

Perception vs. Reality

When volatility is implied to be sky-high like it is ahead of NVDA earnings, selling premium becomes incredibly attractive. 

If the stock doesn’t blow past expectations, implied volatility is going to get crushed … and anyone who bought short-term calls at the top will get smoked.

On the flip side, Buffett’s Alphabet buy gives us an asymmetric setup. 

The market didn’t go wild on the news. That means calls further out on the calendar — say, February or March — could be trading cheap compared to the potential upside if big money starts copying Berkshire’s move.

It’s a tale of two trades:

• Nvidia: Expensive options, sky-high expectations, potential for a “sell the news” moment. This is where I like looking for income trades — credit spreads or out-of-the-money call spreads that benefit from IV crush.
  
• Alphabet: Boring now, but quietly picking up attention. I’m looking for leverage — long call spreads with decent time, or diagonal call calendars that let me play the long game without bleeding premium on the front end.

Back in the Hot Seat

And the Fed? 

Its trading scandal won’t tank the market, but it adds fuel to the fire heading into December’s FOMC meeting. 

Every little distraction, every credibility hit, makes it harder for Powell to land the plane clean. 

Markets want rate cuts in 2024 and the Fed wants to wait. This new headline makes that fight even messier.

So volatility isn’t going anywhere.

This is exactly the kind of setup I love: big names moving in opposite directions to the sound of conflicting signals. Emotional headlines that keep retail traders guessing. 

Meanwhile, we stay cool, pick our spots, and trade the edges of all that chaos.

Buffett is moving billions. Thiel is quietly heading for the exits. The Fed is back under a cloud.

If you’re paying attention, this week could hand you one of the cleanest setups of the quarter.

Stay Street Smart,
Jeff Zananiri