Semiconductor Stocks Suffer Worst Day Since March as Qualcomm Rally Reverses; Nvidia Options Activity Surges
Nvidia call buyers bet on further gains despite AI leader hitting record high; Intel sees 100% rally off lows with aggressive options play
نظرة سريعة
- Semiconductor stocks are on track for their biggest down day since March 30, with the VanEck Semiconductor ETF (SMH) down about 1% after an early Qualcomm rally reversed.
- Despite the broad decline, options activity remains bullish in Nvidia, where a $2.2 million purchase of 2,168 at-the-money $210-strike calls expiring May 15 was executed as shares touched a new all-time high of $212.65.
- Call volume outpaces puts more than two-to-one in Nvidia.
ملخص مُنشأ بالذكاء الاصطناعي
Semiconductor stocks are on the verge of posting their biggest down day since March 30, as a huge early rally in Qualcomm completely reversed after the opening bell. The VanEck Semiconductor ETF (SMH) is now down about 1%, but call buyers in at least two key chip stocks are looking for further gains.
One of the biggest trades in the group this morning is a $2.2 million purchase of 2,168 $210-strike calls in Nvidia that expire May 15. Those are at-the-money contracts that pay off with further upside in the AI leader, whose shares just touched a new all-time high of $212.65. Calls are outpacing puts more than two-to-one in Nvidia options, and call premiums account for more than 80% of value traded. With earnings about a month away, volatility in the stock is still slightly cheaper than in SMH.
Bulls look resilient in Intel as well, where call volumes and premiums outpace puts after a blistering 100% run off last month's lows. And it appears one trader is betting the stock goes for an even wilder ride. Specifically, they created a lopsided call spread, where they sold 3,000 of the $60-strike calls expiring June 18 and used that money to buy 10,000 of the $95-strike calls expiring the same day.
