Semiconductor stocks are on the verge of posting their biggest day of decline since March 30, as a big early rally in Qualcomm completely reversed course after the opening bell. VanEck Semiconductor ETF (SMH) Now down about 1%, but call buyers in at least two major chip stocks look for further gains.
One of the largest trades in the group this morning was the purchase of 2,168 $210-strike calls for $2.2 million. NVIDIA Which expires on 15th May. Those are at-the-money contracts that further benefit the AI ​​leader, whose shares recently touched a new all-time high of $212.65.
Calls are being outnumbered more than two-to-one in Nvidia options, and call premiums account for more than 80% of the traded value. With earnings about a month away, the volatility in the stock is still a little cheaper than SMH.
nvidia, ytd
bulls look flexible intel Also, where call volumes and premiums have taken off after a sharp 100% decline from last month’s lows.
And it appears one trader is betting the stock will go even higher. Specifically, they created an unbalanced call spread, where they sold 3,000 of $60-strike calls expiring on June 18 and used that money to buy 10,000 of $95-strike calls expiring the same day.
Intel, YTD
The trade will lose money if Intel’s expiration date is below $108, but the value of the 10,000 calls purchased could increase rapidly if volatility in the stock increases further – something we often see when retail traders find a new favorite.
