economy
Semiconductor shorts pile on as winning trade reverses
Investors' favorite trade is suddenly the one they can't stop betting against.
TL;DR
- Chip stocks, tracked by the VanEck Semiconductor ETF (SMH), are experiencing a decline after reaching record highs.
- Options traders are heavily betting against SMH, with put volume significantly exceeding call volume.
- This bearish sentiment has extended to the broader tech market, including the Invesco QQQ ETF.
- The shift in trading suggests a reversal from previous investor enthusiasm for AI-related hardware stocks.
- Increased put buying may lead to further downside as market makers adjust positions.