Semiconductor stocks are on track to record their biggest down day since March 30, as Qualcomm’s big early gains completely reversed after the opening bell. of VanEck Semiconductor ETF (SMH) is currently down about 1%, but call buyers in at least two major semiconductor stocks are eyeing further gains.
One of the biggest intragroup trades this morning was the purchase of 2,168 $210 strike calls for $2.2 million. Nvidia These are at-the-money contracts that reward further gains for the artificial intelligence leader, whose stock price just hit a new all-time high of $212.65.
Calls outnumbered puts on Nvidia options by a 2-to-1 ratio, with call premium accounting for more than 80% of the trade value. With about a month left until earnings, stock price volatility is still slightly lower than SMH.
Nvidia since the beginning of the year
Bulls seem resilient intel After a ferocious 100% drop from last month’s lows, call volume and insurance premiums are outpacing puts.
And one trader appears to be betting on an even wilder ride for the stock. Specifically, he created a lopsided call spread by selling 3,000 $60 strike calls expiring on June 18th and using that money to buy 10,000 $95 strike calls expiring on the same day.
Inter since the beginning of the year
If Intel’s stock price falls below $108 by the deadline, the trade will be at a loss, but the value of the purchased 10,000 calls could rise quickly if the stock price becomes more volatile. This is a common phenomenon when retail traders acquire a new favorite stock.
