tech
Chip rebound sparks hedging flurry from traders
Despite the overall bearish sentiment on the cohort, traders put a few bullish bets on potential semiconductor winners.
TL;DR
- Traders are favoring put options on the VanEck Semiconductor ETF (SMH), suggesting a bearish outlook on the broader chip market.
- Despite overall bearish sentiment, bullish bets are being made on specific chipmakers like Marvell Technology, anticipating its inclusion in the S&P 500.
- Intel is seeing increased options activity, with a majority of volume tied to calls, potentially due to reports of a large AI chip order from Alphabet.
- Cerebras also experienced significant call option activity, overwhelmingly favoring out-of-the-money contracts.
- The semiconductor market has been highly volatile, with expectations of continued price fluctuations.