So, picture this: Elliot Dornbusch, a money guy with a cool $22 billion under his belt at CV Advisors, is eyeballing the Strait of Hormuz situation like it could turn into a recipe for economic disaster. He’s playing it safe with his portfolio, steering clear of black swan events like a classic New Yorker dodging puddles after a rainstorm.

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1. Selling calls and buying puts

Dornbusch has a game plan, and it involves options. He’s buying puts, which is Wall Street talk for having a safety net if stocks decide to take a nosedive. His puts on the S&P 500 cover him for a 15% drop. But that’s not all. He’s also selling call options. It’s like renting out your apartment with the option to sell it at a fixed price – he makes a tidy sum in premiums if the market doesn’t hit those heights. He’s skeptical about another year of crazy double-digit gains in the S&P 500, so he’s playing both sides.

Let’s not forget, Dornbusch also holds a long position on the S&P 500, ready to cash in if things soar, but not too much! It’s a push and pull, ensuring he’s got money on both ends of the market spectrum.

2. Investing in medium- and long-duration bonds

Then there’s the bond scene. Dornbusch is buying up medium- and long-term Treasurys and some solid corporate bonds. Now, why would he do that? Because these bonds got higher yields – like a fine New York diner coffee. Right now, 30-year Treasurys are pulling in 4.85%, while corporate bonds are yielding 4.68%. Not bad, right?

This strategy isn’t as risky as it sounds. Sure, rising rates could mean trouble, but Dornbusch believes the bonds won’t rocket higher since they’re still cheap compared to stocks. Plus, any move towards recession would make these bonds more appealing, letting him sell for profit and buy stocks when they’re looking downright gloomy.

And let’s talk global. He’s keeping an eye on Europe and Asia. Markets there might react differently to the Hormuz situation, opening doors for smart moves. “We’ve got optionality,” Dornbusch states, always ready for a real market shakeup, not just minor hiccups.

So, while everyone’s biting their nails, Dornbusch is sipping his metaphorical espresso, ready with a playbook that screams confidence and caution all at once. It’s like watching a master chess player in the chaos of Times Square. You know he’s onto something. Take notes, folks.

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Advanced Micro Devices, Inc. (AMD) is shaking things up in the tech world, and we’re here for it. Let’s break it down.

AMD’s stock was cruising around $159.79 as of late September. But, there’s a bigger picture here. The wizards over at Phaetrix Investing’s Substack have crafted a bullish story on AMD, and it’s worth exploring.

AMD as a GPU Powerhouse
Why should you care about AMD? The company’s drawing more eyes with its solid GPU game. Nvidia’s been stumbling with reliability hiccups—think melted RTX 4090 connectors and boot issues in the RTX 5090/5080 series. Here’s where AMD steps in, all stable and ready with its RX 9070 XT, offering robust 1440p performance. Plus, their open-source ROCm platform is flexing muscles in data centers.

Financial Strengths
The Q2 2025 numbers didn’t disappoint. Revenue hit $7.7 billion, a 32% spike from the previous year. Gaming pushed the envelope with a 73% boost to $1.1 billion, and data center numbers climbed 14% to $3.2 billion. Yes, there was a hiccup with an $800 million inventory charge due to export controls on MI308 accelerators, but Wall Street’s optimistic forecasts point to a 15–20% EPS growth through 2027.

Revenue Breakdown
| Segment | Revenue Growth |
|—————-|—————-|
| Gaming | +73% |
| Data Center | +14% |

Investment Opportunities and Challenges
Looking at the 12-18 month window, AMD is eyeing 12–18% base-case returns. If Nvidia’s execution issues stick around, we could see a 20–25% upside. Markets tend to focus on AMD’s CPUs, but the portfolio extends beyond, potentially capturing significant ground in the $120 billion discrete GPU market. There are hurdles, though. Nvidia’s ecosystem is strong, and AMD’s RDNA 4 portfolio isn’t as broad. With the semiconductor industry’s cyclical nature and macro economic factors like Fed rate hikes in play, AMD faces challenges ahead. Yet, the diversified revenue streams could spell expansion.

Risks and Growth Potential
The risk/reward profile is compelling. Nvidia’s quick recovery or tighter export controls could offset gains. But AMD’s execution could mean meaningful upside, especially given Nvidia’s current struggle.

Previously, StockOpine’s bullish thesis on AMD in May 2025 noted strong Q1 growth driven by Data Center and Ryzen processor sales. Since then, AMD’s stock rose by 39%. The diversified CPU and GPU game remains strong, with AI demand and EPYC market share playing crucial roles.

Conclusion
AMD is positioned as a robust alternative in a market that’s ripe for disruption. The proof is in the numbers, and the narrative is all about growth and opportunity. Hold onto your hats—AMD’s on the move.

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