Two massive trades just happened in Micron and Nvidia. What they could mean for chips
Bears continued to build up positions against the semiconductor group on Friday.
TL;DR
- Bears increased positions against the semiconductor group on Friday.
- High volumes of put options traded in the SMH ETF, with put open interest surpassing calls.
- A large put trade in Nvidia suggests a need for a 22% stock drop by expiry.
- Substantial premium was associated with likely put buying in Micron, including deep in-the-money contracts.
- These Micron trades may represent a synthetic short position with defined risk.